Indian pellet prices have witnessed considerable price hike of INR 100-400/MT this week.
Market participants reported that improved trades amid increase in P-DRI prices has supported pellet offers.
Also few market sources shared that pellet export market has turned quiet with limited trade activities owing to prevailing Christmas and New Year holidays. Also, pellet premium which was at USD 27.5/DMT, CFR China towards Dec’16 beginning has dropped by USD 2/DMT to USD 25.5/DMT, CFR China by mid Dec’16.
Softening sentiments in global market and rising pellet sponge prices in domestic market has boosted sentiments in pellet domestic market.
Indian Pellet Prices as on 28 Dec’16
|
City |
Grade (Fe%) | Prices | W-o-W |
Remarks |
| Barbil | 63 | No offers | – | JSPL sold nearly 0.2 MnT pellets at INR 4,000-4,150/MT (loaded to wagons). However, presently the company is holding sales and will open fresh bookings from Jan’17 onwards. Barbil pellet offers expected to move up by INR 100-200/MT next month. |
| Jharsuguda | 63 | 4,800 | +400 | Shyam Metaliks & Energy sold 5,000 MT pellets at INR 4,600/MT to Raigarh based plant, following which the company has raised offers to INR 4,800/MT. |
| Durgapur | 63 | 4,600-4,800 | = | Rashmi Metaliks which was not seen giving offers in domestic market owing to its lined up export shipments, has resumed offering in limited quantities. Current offers are at INR 4,600/MT. Pellet offers of Shyam Sel & Super Smelters are at INR 4,800/MT. |
| Jamshedpur | 63 | 4,100 | +100 | Adhunik Metaliks has marginally raised offers over improved demand from sponge manufacturers. |
| Raipur | 63 | 4,700-4,800 | +200 | Major pellet deals concluded at INR 4,300-4,500/MT (basic) approx qty 90,000 MT. Post new prices sales are hand to mouth.. |
| Bellary | 63 | 5,400-5,500 | +200 | Bellary pellet offers have increased amid rise in P-DRI prices. |
| Kandla* | 63 | 6,400 | = | Jindal SAW continues to hold pellet offers. |
Basic prices in INR/MT
*delivered
Source: SteelMint Research
Trade-wise:
1. Rourkela based Mahavir Ferro Alloys has raised pellet offers by INR 300/MT to INR 4,400/MT (ex-Rourkela).
2. Rashi Steel & Power (Bilaspur) sold nearly 2,000 MT pellets at INR 4,600/MT (ex-plant) to Bilaspur based sponge plant. Current offers heard at INR 4,700/MT (ex-plant).
3. Durgapur based Super Smelters sold 4,000 MT pellets at INR 4,800/MT (basic).
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