Continuing further decline, central India pellet offers fell by INR 150/MT W-o-W in week 44, however buying interest still lower at INR 300-400/MT from present offers.
Amid weak buying interest from sponge manufacturers and fall in P-DRI prices (by INR 500 /MT W-o-W in Raipur), central India pellet offers have witnessed reduction. Raipur pellet offers are at INR 4,700/MT (basic). Trade sources shared that even at reduced offers, buying interest is thin and sponge manufacturers are demanding for price lower by INR 300-400/MT than present levels.
Limited trading kept pellet prices under pressure in eastern India as well. Pellet prices in Jharsuguda fell by INR 100/MT and in Jamshedpur they declined by INR 300/MT. Market participants are hopeful that demand will revive post Diwali holidays.
Southern India pellet makers hold offers – Recent increase of INR 200-500/MT W-o-W in Bellary P-DRI prices prevented southern India pellet offers from declining. Presently offers for Fe 63% pellets are hovering in the range of INR 4,900-5,200/MT.
Trade-wise :
1. Raipur based Jayaswal Neco reduced pellet offers to INR 4,800/MT (after VAT exemption). It concluded a deal for 2,000 MT pellets to a Raipur based sponge plant at INR 4,800/MT (after VAT exemption)
2. Bilaspur based pellet maker – Rashi Steel & Power is offering pellets at INR 4,700/MT (ex-Bilaspur)
3. West Bengal based Super Smelter’s pellet offers remain unchanged at INR 4,800/MT. It booked a deal for supply of 2,000 MT pellets to a West Bengal based plant at INR 4,800/MT
4. Bhilwara (Rajasthan) based pellet maker – Jindal SAW increased pellet offers by INR 150/MT W-o-W amid increase in iron ore prices in global market. Presently offers for Fe 63% pellets are at INR 5,600/MT (delivered Kandla)
5. BMM Ispat pellet offers are at INR 4,930/MT for Fe 63% grade material
6. Rourkela based Shri Mahavir ferro Alloys concluded a deal of 3,000 MT pellets with local buyers at INR 4,300 ex-plant. Current offers are at INR 4,300-4,400/MT (ex-plant)
Indian Pellet Prices as on 25 Oct’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,850 | 0 | +300 |
| Jharsuguda | 63 | 4,200 | -100 | -300 |
| Jamshedpur | 63 | 4,200 | -300 | -100 |
| Durgapur | 63 | 4,300-4,800 | 0 | +300 |
| Raipur | 63 | 4,700 | -150 | -250 |
| Bellary | 63 | 4,900-5,200 | -50 | -150 |
| Kandla** | 63 | 5,600 | +150 | +150 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
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