Pellet prices in eastern India have witnessed improvement this week. Amid increase in fines prices and improved prices of pellet sponge, pellet prices have also moved up.
Pellet prices in eastern regions of country have witnessed strength this week and have moved up by upto INR 200/MT. In Barbil pellet offers are in the range of INR 3,000-3,100/MT (loaded to wagons). Following reasons have attributed to rise in pellet prices:
Rise in fines prices by upto INR 100/MT: Some Odisha merchant miners have recently raised fines prices by upto INR 100/MT this week. For instance, fines (Fe 63%) of Rungta Mines is currently at INR 1,650/MT (loaded to wagons & inclusive of Royalty, DMF & NMET) against previous price of INR 1,550/MT.
Increase in prices of pellet sponge: P-DRI (78 FeM) prices in Durgapur are up by INR 600/MT W-o-W and are currently at INR 12,200/MT (ex-works)
Less availability of iron ore lump in Odisha: As per market sources, in the current scenario there is somewhat shortage of lump in Odisha as some smaller merchant mines have already utilized their respective EC limits for this fiscal. This factor has somehow given some support to pellets. Also, dispatches from Serajuddin mines (a major merchant miner) continues to remain halted which has also restricted iron ore availability in the state.
Talking about central India, pellet offers have witnessed weekly gain of INR 100/MT and in Raipur they are at INR 4,300/MT (basic). Bellary pellet offers continue to remain stable at INR 4,200/MT (basic).
Indian Pellet Prices as on 04 Mar’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,000-3,100 | +100 | +50 |
| Jharsuguda | 63 | 4,000 | +200 | +300 |
| Durgapur | 63 | 3,700-3,900 | +50 | 0 |
| Raipur | 63 | 4,300 | +100 | +300 |
| Bellary | 62 | 4,200 | 0 | +100 |
Basic prices in INR/MT
* loaded to wagons
Source: SteelMint Research
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