Indian Pellet Prices Decline over Falling Sponge Offers

Barbil pellet offers remain at previous week’s levels. However decline has been noticed in pellet prices in other major regions. Pellet trading activities remained thin over downswing in domestic sponge iron prices.

Jindal SAW reduces offers amid dull buying interest-

Bhilwara based pellet maker-Jindal SAW has cut pellet offers by INR 500/MT against previous assessment. Currently offers for Fe 63% pellets are at INR 4,200/MT (ex-Kandla) and for Fe 65% pellets they are at INR 4,500/MT (ex-Kandla). Dull buying interest from steel mills over declining finished steel prices and competitive cost of imported lump offers has resulted in price cut.

Raipur pellet prices down to INR 4,000-4,100/MT-

Declining sponge iron prices has badly hit pellet buying in Raipur as well. Pellet prices are now hovering in the range of INR 4,000-4,100/MT (basic).

“P-DRI prices in Raipur have fallen by INR 500/MT in a week’s time. Currently prices are in the range of INR 10,500-10,600/MT (ex-works) for 80 FeM. Decline in prices of pellet sponge has resulted in thin pellet buying, shared a Raipur based pellet maker”

Southern India pellet makers lower offers marginally-

Slight reduction of INR 50/MT W-o-W was seen in Bellary pellet prices. Prices for Fe 63% pellets are in the range of INR 4,250-4,300/MT (basic).

Indian Pellet Prices as on 17 May’16

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

Iron pellet trade log-

1. A Raipur based pellet maker sold 10,000 MT pellets (Fe 63%) to a Nagpur based plant at INR 4,025/MT (basic)
2. Another Raipur based pellet manufacturer sold small quantity of pellets at INR 4,100/MT (basic)
3. Jhrasuguda based pellet maker concluded deals at INR 3,500/MT (basic)