P-DRI prices in southern India have strengthened by INR 600/MT W-o-W resulting in upwards movement in pellet prices as well.
Southern India pellet offers increase amid rise in sponge prices – Bellary based pellet manufacturers have raised pellet offers by INR 150-200/MT and are presently seen making offers in the range of INR 4,600-4,750/MT (basic) for Fe 63% pellets.
“Market is quite supportive and demand is good. P-DRI prices have moved up sharply in last one week following which pellet offers have also increased”, shared a southern India based pellet maker.
Eastern India pellet offers remain stable – Domestic pellet offers in eastern India remain unchanged on weekly premises. Pellet offers in Jharsuguda, Durgapur and Jamshedpur continue to hover at same levels as those in the previous week.
In talk with SteelMint, market participants shared that pellet prices may go up by INR 100-200/MT over the recent increase in fines prices by Odisha merchant miners.
Odisha based pellet manufacturer sees export as potential market rather than domestic due to realisation difference of INR 400-500/MT.
Jindal SAW pellet offers down by INR 150/MT – Bhilwara (Rajasthan) based pellet maker – Jindal SAW has reduced pellet (Fe 63%) offers to INR 5,450/MT (delivered Kandla). Prior to this, the pellet maker was seen giving offers at INR 5,600/MT (delivered Kandla). Amid decline in seaborne iron ore prices in China (down by USD 2/MT W-o-W) imported lump offers to India have also fallen. In order to remain competitive, west India domestic pellet offers have also fallen.
Trade-wise:
1. Southern India based pellet maker – MSPL has raised pellet offers by INR 200/MT. Present offers for Fe 63% pellets are at INR 4,750/MT (basic).
2. Bilaspur based pellet maker – Rashi Steel & Power has sold 4,000 MT pellets at INR 4,550/MT (ex-Bilaspur) in the local market. Present offers are at INR 4,600-4,700/MT (ex-Bilaspur).
3.Rourkela based Shri Mahavir Ferro Alloys is currently offering pellets at INR 4,100/MT (ex-plant)
4.Odisha based pellet maker Arya Iron & Steel pellet offers are at INR 3,550/MT (loaded to wagons)
Indian Pellet Prices as on 20 Sept’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,550 | 0 | +50 |
| Jharsuguda | 63 | 4,100 | 0 | +300 |
| Jamshedpur | 63 | 4,200 | 0 | – |
| Durgapur | 63 | 4,000-4,300 | 0 | +400 |
| Raipur | 63 | 4,600-4,650 | +50 | +500 |
| Bellary | 63 | 4,600-4,750 | +200 | +300 |
| Kandla** | 63 | 5,450 | -150 | 0 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
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