Domestic pellet prices have shown a mixed response in this week (i.e. week 24). On one side where central and western India pellet offers have declined on weekly basis. On the other side southern India based pellet makers have raised offers by INR 100/MT W-o-W.
Week 24 highlights-
1. Jindal SAW reduces pellet offers by INR 400/MT- Bhilwara (Rajasthan) based pellet maker Jindal SAW has cut pellet offers by INR 400/MT. Current offers for Fe 63% pellets are INR 4,800/MT (delivered Kandla). A western India based market source shared that few steel mills have shut operations following which pellet buying is weak.
2. Central India pellet offers down by INR 100/MT- Raipur based pellet manufacturers are presently seen offering Fe 63% pellets at INR 3,900/MT (basic). Offers have fallen by INR 150/MT W-o-W over lesser buying interest of sponge iron manufacturers and NMDC’s price cut. Despite reduction in offers, buying interest is not prominent at current prices and buyers are eyeing for INR 3,800/MT (basic). As per a market source, an Odisha based pellet maker is heard to offer pellets to Raipur based plants at around INR 3,700-3,800/MT (landed to Raipur).
Market participants highlighted that Chhattisgarh based sponge iron manufacturers are increasingly seen preferring NMDC’s DR-CLO as it has turned further attractive after price cut of INR 230/MT M-o-M in Jun’16.
3. Southern India pellet prices move up- Pellet prices in southern India have increased by INR 100/MT W-o-W. Prices for Fe 63% pellets are presently hovering in the range of INR 4,200-4,275/MT (basic).
4. Few east India based pellet manufacturers reduce offers- Few east India based pellet manufacturers have reduced offers. Barbil based Arya Iron & Steel has cut pellet offers to INR 2,850/MT (loaded to wagons). Barbil pellet offers are in the range of INR 2,850-3,000/MT (loaded to wagons). A Barbil based pellet maker has sold around 0.2 MnT pellets at INR 3,000-3,050/MT (loaded to wagons).
Indian Pellet Prices as on 08 Jun’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 2,850-3,000 | -100 | -150 |
| Jharsuguda | 63 | 3,400 | -100 | -200 |
| Jamshedpur | 63 | 3,300 | 0 | -50 |
| Durgapur | 63 | 3,300-3,500 | 0 | -200 |
| Raipur | 63 | 3,900 | -150 | -250 |
| Bellary | 63 | 4,200-4,275 | +100 | -100 |
| Kandla** | 63 | 4,800 | -400 | -900 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
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