Pellet Prices Likely to Remain Stable this Week Amid Festive Holidays

Eastern India pellet prices remain stable with limited trade activities

Pellet prices in eastern India continue to remain at similar levels as those of last week. Last week, Jindal Steel & Power sold pellets at INR 3,800/MT (loaded to wagons). In Durgapur, pellet offers are at INR 4,500-4,600/MT (basic) and in Jharsuguda they are around INR 4,100-4,200/MT (basic).

Less fluctuation in pellet prices is expected this week as major markets in eastern India will remain closed on account of forthcoming holidays, shared an industry source.

Pellet prices in central India remain stable. Current offers for Fe 62% pellets in Raipur are at INR 4,700/MT (basic). Preference of sponge manufacturers towards lump and limited bookings continue to keep pellet makers under pressure.

Jindal SAW lowered pellet offers by INR 200/MT

With imported lump offers becoming cheaper due to falling spot iron ore prices, domestic pellet prices in western India have also witnessed reduction. Current pellet offers of Jindal SAW are at INR 5,150/MT (delivered Kandla & CST extra). Market sources anticipate further cut in pellet prices in the days to come.

Pellet prices in southern India fall by INR 150/MT

Some of the pellet makers in southern India have reduced pellet prices by INR 150/MT and are seen offering pellets in the range of INR 4,450-4,500/MT (basic) at Bellary for Fe 63% pellets. While others continue to hold offers at INR 4,700/MT (basic).

Indian Pellet Prices as on 19 Oct’15

Basic prices in INR/MT
*loaded to wagons
**delivered
Source: SteelMint