India has an installed pellet capacity of 84 MnT pa. Out of which major share of about 60% is concentrated in eastern and central India.
Plunge in global prices has narrowed down realizations in exports, following which Indian pellet exports have come down. India exported 0.49 MnT pellets in Apr’17 against 0.75 MnT in Mar’17.
According to sources, an Indian pellet maker has recently concluded a pellet export tender at USD 81-82/MT, CFR. Considering vessel freight to be around USD 8-9/MT; Indian pellet export offers are presently hovering at USD 71-73/MT, FoB India.
Down swing continues in domestic Pellet Prices over limited trades
Dull demand and limited trades continue to weigh domestic pellet prices in India. Prices declined further this week up to INR 100-400/MT W-o-W.
Plunge in global prices has narrowed down realizations in export forcing east India based pellet plants to focus on domestic sales. On the other hand, drop in P-DRI prices has reduced the pellet buying interest from sponge manufacturers. This has resulted in further decline in pellet offers. P-DRI prices in Durgapur have fallen by INR 500/MT W-o-W and is trading at INR 14,700/MT (delivered).
Indian Pellet Prices as on 09 May’17
|
City |
Grade (Fe %) | Basic Prices in INR/MT |
W-o-W |
| Barbil* | 63 | 4,000-4,200 | -100 |
| Keonjhar* | 63 | 3,900 | -100 |
| Jamshedpur | 63 | 4,200 | -400 |
| Jharsuguda | 63 | No offers | – |
| Durgapur | 63 | 4,400-4,600 | -300 |
| Raipur | 63 | 4,700-4,800 | = |
| Bellary | 63 | 6,000-6,100 | -100 |
*loaded to wagons
Source: SteelMint Research
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