Jindal Steel & Power Limited (JSPL), one of the largest Iron Pellet manufacturer based in the eastern region of India, resumes domestic sales at higher prices w.e.f August 22 i.e. after a month's time.
Presently, the company is operating a 4.5 million tonne per annum (MnTPA) Pellet plant in Barbil (Odisha).
It is expected to commission another 4 MnTPA Pellet plant by September this year.
The Barbil based Pellet maker is offering its raw material at Rs 6,700/MT (loaded).
On July 22, JSPL decided to close domestic sales as prices touched an all time low of Rs 6,100/MT (loaded) then.
It started utilizing the raw material for captive purposes in its Raigarh (Chhattisgarh) manufacturing unit and for its DRI making furnace in Oman.
Also, JSPL was exploring export possibilities and did conclude a couple of deals for a total quantity of 100,000 tonnes, within a month's time.
Realizations from exports market at US$ 138-143/MT FoB Paradeep Port, are higher by Rs 500-600/MT as compared to domestic sales.
Hence, domestic offers gain Rs 600/MT in comparison to what it was offering a month before.
Though, no booking orders have been received at new prices levels, the Pellet manufacturer is holds a wait and see attitude at the moment.
The company is yet to take any decision about a third Pellet export deal, as shipment of the previous two deals will take place in the beginning of September.
Pellet producer at Jharkhand (Jamshedpur) lifts offers by Rs 100/MT to Rs 6,700/MT (basic) due to improved demand.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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