Pellet Makers Raise Offers amid Increasing P-DRI Prices

On the back drop of price recovery in prices of semi finished and finished steel products, some pellet makers have also raised their offers.

P-DRI prices in eastern India have increased by INR 2,500/MT in last one week to INR 12,500-13,000/MT for 78 FeM. Some pellet makers in eastern India have also started to raise offers by upto INR 250-300/MT. Barbil pellet offers remain unchanged at INR 3,000/MT (loaded to wagons). But as per market participants there are chances of increase in offers in near term.

Durgapur pellet offers have moved up by INR 300/MT W-o-W and are currently around INR 4,000-4,200/MT (basic). Pellet offers in Jharsuguda have also increased to INR 4,000/MT (basic).

In central India too, offers have witnessed an increase and in Raipur offers are up by around INR 350/MT W-o-W.

“Positive sentiments are prevailing in the market after MIP (Minimum Import Price) was notified by the Indian govt. Following rise in sponge prices, pellet makers have also raised their offers. In Raipur offers are around INR 4,300-4,400/MT (basic)”-shared a Raipur based pellet maker.

Talking about southern India, prices are mostly unchanged. However pellet makers in southern India may increase offers in the near term.

Indian Pellet Prices as on 08 Feb’16

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