SteelMint in conversation with market participants learned that Raipur (Central India) based pellet manufacturers have today reduced offers to INR 6,100/MT (ex-Raipur, GST extra) for Fe 63% grade. Last offer floated was at INR 6,300/MT (ex-Raipur, GST extra). Thus offers have come down by INR 200/MT (USD 3).
However, major sponge manufacturers do not see strong demand at current offers. It is to be noted that competitive pellet offers from Raigarh and Bilaspur had kept Raipur pellet offers under pressure in recent past as landed cost to Raipur was comparatively cheaper.
SteelMint in conversation with Raigarh based pellet makers today learned that they are yet to announce fresh offers.
Raipur based pellet makers were awaiting NMDC price revision reduced offers following NMD price revision done yesterday. NMDC Ltd, India’s biggest iron ore producer, has cut iron ore lump and fines price from its CG mines by up to INR 150/MT (down 5%) from the last offers. Current offers assessed at INR 2,610/MT FoR, including Royalty, DMF & NMET.
In a month’s time, Raipur pellet offers have come down by around by INR 700-800/MT.
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