Central India (Raipur) based pellet manufacturers have raised offers following hike in pellet sponge (P-DRI) prices. Pellet offers have moved up by INR 150/MT W-o-W.
Current offers for Fe 63% pellets are assessed at INR 5,500-5,600/MT (ex-Raipur). Last week the offers were hovering at INR 5,300-5,400/MT.
Despite hike in offers, decent number of the trade deals were heard to have concluded by Raipur based pellet manufacturers at INR 5,400/MT.
Hike in pellet offers was a result of sharp rise in P-DRI prices. Last week, P-DRI prices in Raipur increased by INR 900-1000/MT W-o-W amid limited supply. Following this, pellet manufacturers have raised their offers. Currently, P-DRI prices in Raipur are heard around INR 17,300/MT (ex-Raipur).
Trade-wise:
1. Jharsuguda based pellet maker – Shyam Metaliks & Energy sold about 4,000 MT pellets at INR 5,500/MT (basic)
2. Few pellet deals in Durgapur were heard to have concluded at around INR 5,400/MT.
3. Bhilwara (Rajasthan) based pellet maker – Jindal SAW has kept offers unchanged as of now at INR 6,400/MT (delivered Kandla). The pellet maker is likely to take maintenance shut down towards end of Jan/early Feb’18.
4. According to customs data maintained with SteelMint, Jindal SAW exported 51,000 MT pellets from Mundra port on vessel name ‘Menalon’ in beginning of Nov’17. The cargo is likely to be shipped to China.
5. A southern India based pellet maker has concluded a deal at around INR 6,400/MT (ex-Bellary).
Indian Pellet Reference Prices as on 21 Nov’17
|
City |
Grade (Fe %) |
Basic Prices in INR/MT |
| Barbil* | 63 | 5,000 |
| Durgapur | 63 | 5,400 |
| Raipur | 63 | 5,400-5,600 |
| Jharsuguda | 63 | 5,500 |
| Jamshedpur | 63 | 5,000 |
| Bellary | 63 | 6,200-6,500 |
| Kandla** | 63 | 6,400 |
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
*Loaded to Wagon
**Delivered
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