- Pellet prices gain nearly INR 900/t in 10 days
- Tighter availability and firm steel prices support offers
Pellet manufacturers in Raipur, Chhattisgarh, increased offers further for Fe 62.5/63% (+/-0.5%) grade pellets by INR 300/t ($3/t) to INR 11,700-11,800/t ($121-122/t) ex-works on 5 October. This marks third hike and almost INR 900/t hike in the last ten days.
The latest increase was supported by increased semi’s and long products by Indian primary steel mill for October delivery.
Spot availability has also remained constrained. Some Raipur-based pellet sellers are under maintenance shut down led the shortage in the market. Also, due to monsoon-related disruptions and a landslide on 25 September, halted NMDC dispatches and led to pending movements. Dispatches are expected to normalize by around 10 October, as per BigMint understanding.
Meanwhile, Raipur P-DRI prices increased by INR 1,450/t ($15/t) w-o-w to INR 29,450/t ($306/t) on 3 October. The increase was supported by active buying over the past few days, with domestic consumers replenishing inventories amid stable finished steel demand.
The combination of hike in long prices, tighter spot availability and higher sponge iron prices is providing support to Raipur pellet offers.
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