JSPL Raises Pellet Offers by INR 300/MT

JSPL raises pellet offers amid increasing pellet sponge prices to INR 3,300/MT (loaded to wagons).

Jindal Steel & Power has raised pellet offers by INR 300/MT. Current offers for Fe 63% pellets are at INR 3,300/MT (loaded to wagons). Prior to this price change Barbil pellet offers were at INR 3,000/MT (loaded to wagons).

The pellet maker has raised prices on the backdrop of sharp increase in pellet sponge prices. P-DRI prices in eastern regions of India have moved up by about INR 2,500/MT in last two weeks. Currently prices of pellet sponge (78 FeM) is at INR 13,150/MT ex-works in Durgapur. Positive sentiments have driven up the market after Indian govt. notified Minimum Import Price (MIP) on steel products.

Also, some major merchant iron ore miners in Odisha have cut fines prices by INR 150/MT to INR 1,250-1,300/MT (ex-mines & inclusive of Royalty) for Fe 62% fines. Other miners may also follow the suit. This may also give some relief to the pellet makers who were hit hard by unmoved fines prices.

Barbil pellet offers have remained stable since end of Jan’16 and were at INR 3,000/MT (loaded to wagons) although buying interest remained weak.