More Indian Pellet Manufacturers Raise Offers

After price hikes announced by two major east India based pellet makers – Jindal Steel & Power (JSPL) and Arya Iron & Steel, some more pellet manufacturers in eastern India have raised offers.

Pellet makers in Durgapur and Jamshedpur have also raised offers by INR 200/MT W-o-W. Offers have gone up over improved realizations in exports.

Demand for Indian origin pellets has gone up in China as a major source Brazilian Samarco is still away from resuming operations. Notably, spot pellet premium for Fe 65% pellets is still at USD 22.05/DMT, CFR China. However spot iron ore fines (Fe 62%) prices in China fell marginally to USD 56.4/MT, CFR China yesterday. Following this Indian pellet export offers have come down slightly and are currently assessed at USD 84/MT, CFR China which is equivalent to USD 75/MT, FoB India. Indian pellet exporters are eyeing for offers in the range of USD 86-87/MT, CFR China.

Central India (Raipur) based pellet makers have also hiked offers by INR 150/MT W-o-W. However trade sources highlighted that buying interest still remains  below INR 100/MT than current offers.

Vizag Steel (RINL) had floated a tender on 23 Dec’16 for purchase of 240,000 MT iron ore pellets from the global and indigenous sources. The material delivery was scheduled in three different parts. As per market sources report to SteelMint, Chhattisgarh based pellet maker – Godawari Power & Ispat is likely to supply nearly 60,000 MT pellets to the steel maker which is expected to be done by 20 Jul’17.

Indian Pellet Prices as on 06 Jun’17

*loaded to wagons
Source: SteelMint Research