Pellet manufacturers in South India cut offers by Rs 300-400/t

Pellet manufacturers in Southern India have reported to cut offers by Rs 300-400/t on poor demand and power cuts in surrounding states.

“Pellet prices have come down as most of sponge plants are still shut on lower realization also power cuts in AP and Tamil Nadu has reduced demand for sponge iron.63% Fe iron pellets is offered at around Rs 7,500 (Ex-Works Bellary).” said a sponge manufacturer based in Koppal, Karnataka.

Sponge prices have not reduced much as half the plants are shut and others are operating at low capacity.Sponge prices are offered in the range of Rs 1,8000-1,8500 (75-78 FeM Pellet Sponge, Ex-Works Bellary), he further added.

With more mines to get clearances, it will further add pressure on pellet prices.