Domestic P-DRI prices in India have gained strength in last one week. P-DRI prices in eastern India have moved upto INR 800//MT, by INR 1,300/MT in central India and by INR 700/MT in southern India since last week.
Following increase in P-DRI prices, domestic pellet offers across many regions in India have also gained strength. In Week 51, pellet prices have increased upto INR 400/MT compared to last week’s assessment.
“Pellet sponge prices in Raipur have increased by INR 1,300/MT W-o-W and are presently seen at INR 14,000-14,100/MT (ex-plant). On the back drop of rising pellet sponge prices, Raipur based pellet manufacturers have also raised offers to INR 4,500-4,600/MT. If price surge in P-DRI sustains, Raipur pellet offers may go higher by INR 200/MT”, shared a Raipur based pellet maker.
Indian Pellet prices as on 20 Dec’16
| City | Grade (Fe %) | Prices | W-o-W | Remarks |
| Barbil | 63 | No offers | – | JSPL & Arya Iron & steel keep themselves away from quoting offers in domestic market over better realizations in export. |
| Jharsuguda | 63 | 4,400 | +400 | Shyam Metaliks & Energy in Jharsuguda raised offers amid increase in P-DRI prices in eastern India. |
| Durgapur | 63 | 4,800 | +150 | Rashmi Metaliks is still not quoting offers for domestic market. Super Smelters plant presently being under maintenance shutdown is not offering in domestic market. Shyam Sel has raised offers by INR 100/MT W-o-W. |
| Jamshedpur | 63 | 4,000 | -50 | Adhunik Metaliks continues to keep offers unchanged. |
| Raipur | 63 | 4,500-4,600 | +200 | Raipur based pellet makers raise pellet offers amid hike in P-DRI prices. Market participants reported that Raipur based pellet manufacturers have booked considerable quantity at INR 4,300-4,400/MT. |
| Bellary | 63 | 5,200-5,300 | 0 | Despite increase in P-DRI prices, pellet makers continue to hold offers. Pellet offers likely to go up by INR 200/MT provided price hike in pellet sponge market sustains this week. |
Basic prices in INR/MT
Source: SteelMint Research
Trade-wise:
1. Rourkela based Mahavir Ferro Alloys has kept offers remain unchanged at INR 4,100/MT (ex-Rourkela). Limited deals were reported.
2. Rashi Steel & Power (Bilaspur) sold nearly 10,000 MT pellets at INR 4,450-4,480/MT (ex-plant). Current offers heard at INR 4,500-4,600/MT (ex-plant).
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