Pellet offers in India’s domestic market have decreased from INR 100-400/MT against the beginning of last week over fewer trades amid a decline in P-DRI prices. Few Raipur based pellet makers have decreased offers by INR 200-300/MT, however, others continue to hold offers. Assessment for this week is at INR 9,700- 9,800/MT against an assessment of INR 10,000/MT (basic) at the beginning of last week. Buying interest is INR 100-200/MT below than current offers.
As per market sources, Central India based mills have booked around 10 rakes of pellets from Jamshedpur (eastern India) pellet plant at around INR 8,100-8,200/MT. With rail freight and other charges, the landed price is heard to be around INR 1,000-1,100/MT. The landed price to Raipur stands at around INR 9,100-9,300/MT. Turning competitive, steel mills have booked pellets from eastern India based plants.
Durgapur Pellet prices fall amid the decline in sponge prices-:
Durgapur (Eastern India) reference pellet price assessment stands at INR 8,500-8,600/MT (delivered) this week against last week INR 8,700-8,800/MT. Deals have also been reported at current assessment levels. Durgapur based Rashmi Metaliks is not offering pellets in the domestic market.
P-DRI prices have comes down sharply by INR 600/MT W-o-W to INR 23,200/MT as against INR 23,800/MT last week.
Barbil based pellet maker Arya Iron & Steel are not offering in the domestic market this week also.
Western India Pellet Makers Increased Pellet prices sharply amid a shortage of lumps
West India (Rajasthan) based pellet maker – Jindal SAW has increased pellet prices by INR 400/MT. Current offers for Fe 63% grade pellets have moved up to INR 9,400/MT (delivered Kandla) against a previous assessment of INR 9,000/MT. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).
South African lumps supply in western India has been decreased sharply and currently, availability is also limited led the pellet prices to hike in western India.
Indian Pellet Reference prices as on 18th Sept’18
| Regions | Grade (Fe %) | Basic Prices in INR/MT |
| Durgapur | 63 | 8,500-8,600 |
| Jharsuguda | 63 | 9,000 |
| Raipur | 63 | 9,700-9,800 |
| Bellary | 63 | 8,200-8,400 |
| Kandla** | 63 | 9,400 |
**delivered
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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