Sharp hike in global iron ore prices observed last week has led to increase in west-India pellet prices as well.
Week 47 has witnessed stability in pellet prices across all major markets of India except western India where prices have gone up by INR 300/MT W-o-W.
One week of currency demonetization in India has resulted in limited trade activities in domestic pellet market. Majority of the market participants reported that since past week, trading activities in domestic market have fallen drastically.
Pellet manufacturers continue to hold offers for domestic market and eastern India based pellet makers seemed attractive for exports over increasing offers.
Indian Pellet Prices as on 15 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 | 0 | No buying interest noticed |
| Durgapur | 63 | 4,800 | 0 | Rashmi Metaliks is not quoting offers for domestic market. Others offering at INR 4,800/MT (basic) |
| Raipur | 63 | 4,700 | 0 | Very limited deals heard to be concluded amid fewer inquiries |
| Bellary | 63 | 5,200-5,400 | -200 | Amid dull buying interest, few pellet makers have reduced offers by INR 100/MT W-o-W |
| Kandla* | 63 | 6,400 | +300 | Sharp hike in global iron ore prices (up by USD 11/MT W-o-W) has pushed western India pellet offers |
Basic prices in INR/MT
*delivered
Source: SteelMint Research
Trade-wise:
1. A Raipur based pellet maker sold 5,000 MT pellets at INR 4,700/MT (basic)
2. Southern India based MSPL is offering Fe 65% pellets at INR 5,800/MT (basic)
3. West Bengal based pellet manufacturer – Super Smelters sold 2,000 MT pellets at INR 4,750/MT (basic) last week. Current offers are at INR 4,800/MT (basic)
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