Price rise in semi finished steel goods post MIP (Minimum Import Price) notification by the Indian govt. had driven up sentiments in Indian pellet market for a short while but dull domestic demand for steel has again put the market on backtrack.
Limited buying interest has resulted in decline in prices of semi-finished steel goods which in turn has pressurized pellet prices as well.
Barbil pellet offers are in the range of INR 3,250-3,300/MT (loaded to wagons). Arya Iron & Steel is offering pellets at INR 3,250/MT (loaded to wagons) and pellet offers of Jindal Steel & Power are at INR 3,300/MT (loaded to wagons).
“Thin trading activities and decline in semi-finished steel prices has again put pellet prices under pressure. P-DRI prices in Durgapur have fallen by INR 800/MT W-o-W and are currently at INR 11,800/MT (delivered). Pellet buying interest is low” shared a Durgapur based pellet maker.
In central India too prices have witnessed reduction. Raipur pellet offers have declined by INR 150/MT W-o-W and are currently seen at INR 4,200/MT (basic).
South India based pellet makers have kept pellet prices unchanged as of now. However participants shared that demand is dull. Bellary pellet prices remain stable at INR 4,150-4,200/MT (basic).
Indian Pellet Prices as on 15 Feb’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,250-3,300 | 0 | +50 |
| Jharsuguda | 63 | 3,800-4,000 | -100 | 0 |
| Durgapur | 63 | 3,700-4,000 | -250 | -50 |
| Raipur | 63 | 4,200 | -150 | +50 |
| Bellary | 62 | 4,150-4,200 | 0 | -150 |
| Kandla** | 63 | 4,500 | 0 | +300 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
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