Due to the stimulation in pellet demand a general positive sentiment have been observed in Indian market. Sources reporting to SteelMint from one of the major markets, Durgapur informed that the export offers are better this week as the realizations are quite high considering last week’s prices.
Another reason cited for the price hike is an increase of upto INR 650/MT W-o-W in P-DRI prices, as the sponge has got the sudden attention due to good monsoon in the country. SteelMint assessment for Fe 63% pellets is at INR 4600-4800/MT (Basic, GST@5% extra).
Short Supply Pushes Central India Pellet Offers
Information shared by another participant revealed that the Central India pellet offers have seen a rise of up to INR 350/MT W-o-W due a short supply and an increase of INR 300-400/MT W-o-W in P-DRI prices. SteelMint assessment for Fe 63% pellets is at INR 5300-5400/MT (Basic, GST@5% extra).
The domestic pellet market in the south region has been stable at INR 5850/MT (Basic, GST@5% extra).
Jindal SAW increases Pellet Offers Further
Jindal SAW raised pellet offers over hike in lump premium which made imported lump costlier. Presently Current offers for Fe 63% pellets are at INR 6200/MT delivered Kandla up INR 200/MT. Market participants expect offers to move up further.
Indian Pellet Prices as on 25th Jul’17
| City |
Grade (Fe %) |
Basic Prices in INR/MT |
| Barbil* |
63 |
No Offers. Last offers at 4,000-4,100 |
| Jamshedpur |
63 |
4,200-4,300 |
| Jharsuguda |
63 |
No offers |
| Durgapur |
63 |
4,600-4,800 |
| Raipur |
63 |
5,300-5,400 |
| Bellary |
63 |
5,850 |
| Kandla** |
63 |
6,200 |
*loaded to wagons
**delivered
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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