Week 37 observed a mixed response in pellet prices as prices in central India have soared while eastern India based pellet manufacturers have reduced offers on limited domestic buying.
Domestic pellet prices in eastern India, which were exhibiting upward movement over limited availability and higher realizations in exports, have resisted further increase. Limited buying at higher prices has compelled the pellet makers to reduce offers.
In week 37, Durgapur pellet offers have fallen by INR 100/MT to INR 3,900/MT (basic) and in Jharsuguda they have declined by INR 200/MT to INR 3,800/MT (basic).
Pellet offers in Raipur have moved up by INR 100/MT W-o-W. “P-DRI prices have gained strength on weekly premises and are currently assessed at INR 12,100-12,200/MT (ex-works). This has led to increase in pellet prices which are presently assesed at INR 4,300/MT. However, no significant buying has been noticed so far at this price”, commented a Raipur based pellet maker.
Few southern India based pellet makers have raised pellet offers over increase in prices of pellet sponge. Presently offers for Fe 63% pellets are seen at INR 4,400-4,450/MT.
Indian Pellet Prices as on 06 Sept’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | No offers | – | – |
| Jharsuguda | 63 | 3,800 | -200 | +350 |
| Jamshedpur | 63 | No offers | – | – |
| Durgapur | 63 | 3,900 | -100 | +200 |
| Raipur | 63 | 4,300 | +100 | +400 |
| Bellary | 63 | 4,400-4,450 | +50 | +150 |
| Kandla** | 63 | 5,600 | 0 | +300 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
Trade-wise:
1. Rourkela based Shri Mahavir Ferro Alloys concluded a deal of around 4,000 MT pellets within Odisha based units at INR 3,500/MT. Present offers are at INR 3,500/MT (ex-plant).
2. Bilaspur based pellet maker – Rashi Steel & Power booked 2,000 MT pellets at INR 4,150/MT (ex-Bilaspur). Present offers are at INR 4,200/MT (ex-Bilaspur).
3. Jayaswal Neco – a Raipur based pellet maker concluded a deal of around 3,000 MT pellets at INR 4,400/MT (VAT exemption). Current offers are at INR 4,450/MT (VAT exemption).
4. Jindal SAW pellet offers for Fe 65% are at INR 5,900/MT (delivered Kandla).
5. Southern India based pellet maker – MSPL has raised pellet offers by INR 100/MT. Present offers for Fe 65% pellets are at INR 5,000/MT (basic).
6. Jharsuguda based Shyam Metaliks concluded a pellet deal of 10,000 MT to Raigarh based plant at INR 3,800/MT (basic).
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