Southern India sponge price hike drives up domestic pellet offers. Bellary pellet offers have moved up by INR 400/MT W-o-W in week 46.
Southern India pellet offers move up in line with increasing P-DRI prices. P-DRI prices in Bellary have climbed by INR 900/MT W-o-W. In line with this, domestic pellet manufacturers in southern India have raised their offers.
“We have raised our pellet offers for Fe 63% from INR 5,200/MT to INR 5,500/MT. Domestic pellet offers have moved up amid sharp increase in prices of pellet sponge”, quoted a Bellary based pellet maker.
Talking about other regions, prices continue to remain range bound except Jharsuguda and Kandla where prices have gone up by INR 200-300/MT W-o-W.
Eastern and central India based market participants reported lesser demand from sponge manufacturers amid limited trade activities.
Indian Pellet Prices as on 08 Nov’16
|
City |
Grade (Fe %) | Prices | W-o-W |
Remarks |
| Barbil | 63 | No Offers | – | Pellet makers seen participating in exports thus not quoting offers for domestic market. |
| Jharsuguda | 63 | 4,400 | +200 | Sold around 5,000 MT at INR 4,350/MT (basic) following which raised offers by INR 50/MT. |
| Jamshedpur | 63 | 4,100 | -100 | Pellet demand in domestic market has not yet gained strength resulting in slight decline in offers. |
| Durgapur | 63 | 4,800 | +100 | Rashmi Metaliks has kept domestic sales closed for its upcoming export shipments. Shyam Sel and Super Smelters continue to hold offers. |
| Raipur | 63 | 4,700 | – | Despite increase in P-DRI prices, trading activities has not picked up, prices may fluctuate by INR 50-100/MT. |
| Bellary | 63 | 5,500 | +400 | Prices move up amid increase in P-DRI prices. |
| Kandla* | 63 | 6,100 | +300 | Increase in global iron ore prices (up by $ 3/t W-o-W) make imported lump costlier. Following which domestic pellet prices have also increased. |
Basic prices in INR/MT
*delivered
Source: SteelMint Research
Trade-wise:
1. Raipur based Jayaswal Neco kept pellet offers unchanged at INR 4,800/MT (after VAT exemption)
2. Rourkela based Shri Mahavir Ferro Alloys has reduced offers marginally presently offers are at INR 4,100-4,200/MT (ex-Rourkela)
3. Southern India based MSPL is offering Fe 65% pellets at INR 5,900/MT (basic)
Leave a Reply