Less bookings from pellet sponge manufacturers has put east India domestic pellet manufacturer prices under pressure. Market sources reported to SteelMint that pellet buying inquiries in Odisha have reduced this week.
Trade sources highlighted that billet prices have witnessed sharp hike but P-DRI prices have shown stability in last one week due to hike in power prices in central India. (Central India is considered index to small and medium scale price sentiments). This has resulted in limited pellet trade deals.
Trade sources also shared that Ardent Steel has resumed offering pellets in domestic market. Present offers are at INR 4,800/MT (loaded to wagons).
“Odisha pellet manufacturers may resume domestic sales if export offers continue to remain low”, shared pellet manufacturer located in Odisha. He added pellet export price may open approximately USD 95-100/MT, CFR China that is similar to domestic pellet prices.
In Durgapur pellet prices have come down by INR 200/MT W-o-W and in Raipur prices have declined by INR 100/MT W-o-W due to discount offer in high volume. However in other pellet markets, prices have remained stable this week.
Indian Pellet Prices as on 04 Apr’17
|
City |
Grade (Fe %) |
Basic Prices in INR/MT |
W-o-W |
Remarks |
| Barbil* | 63 | 4,900-5,000 | 0 | JSPL & Arya Iron & Steel continue to hold offers |
| Jharsuguda | 63 | 5,400 | 0 | Shyam Metaliks & Energy sold 4,000 MT pellets to Raigarh based plant at INR 5,400/MT |
| Durgapur | 63 | 5,200-5,500 | -200 | Rashmi Metaliks, Shyam Sel & Super Smelters have reduced prices by INR 100-300/MT |
| Raipur | 63 | 5,200-5,300 | -100 | Buyers asking for pellets at INR 5,100/MT however offers continue to remain at INR 5,200/MT |
| Bellary | 63 | 6,400-6,600 | 0 | MSPL pellet offers are at INR 6,600/MT for Fe 63% pellets and at INR 7,000/MT for Fe 65% pellets |
| Kandla** | 63 | 6,500 | 0 | Jindal SAW pellet offers remain unchanged this week. |
*loaded to wagons
**delivered
Source: SteelMint Research
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