Domestic pellet offers rise up to INR 350/MT in week 40.
Increase in Odisha iron ore prices, rising pellet sponge prices and optimistic outlook has pushed Indian pellet prices by INR 100-350/MT in this week.
Raipur pellet offers have moved up sharply by INR 300-400/MT and hit 1 year high. Presently offers for Fe 63% pellets are seen hovering in the range of INR 4,900-5,000/MT (basic). On the contrary, landed cost of Odisha iron ore lump is lesser despite two successive price hikes. Odisha merchant miners have raised lump prices by INR 400-500/MT in Sept’16.
Presently offers for 5-18 mm (Fe 62%) from Odisha is INR 3,050/MT (loaded to wagons). Considering freight of INR 1,200/MT to a Raipur based plant, landed cost will come around INR 4,300-4,400/MT.
Thus, it is clear that Raipur pellet offers are costlier than Odisha lump by INR 600/MT. According to the market sources, logistics issues in iron ore and seasonal demand pick up has lead sponge makers to go for pellets.
Trade-wise:
1. Southern India based pellet maker – MSPL has raised pellet offers by INR 250/MT. Present offers for Fe 65% pellets are at INR 5,500/MT (basic).
2. Bilaspur based pellet maker – Rashi Steel & Power is offering pellets at INR 4,800-4,850/MT (ex-Bilaspur)
3. Rourkela based Shri Mahavir Ferro Alloys is currently offering pellets at INR 4,500 – 4,600/MT (ex-plant)
4. Shyam Metaliks & Energy in Jharsuguda sold 5,000 MT pellets at INR 4,400/MT. Present offers are at INR 4,500/MT (basic).
Indian Pellet Prices as on 27 Sept’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,550 | 0 | +50 |
| Jharsuguda | 63 | 4,500 | +350 | +500 |
| Jamshedpur | 63 | 4,300 | +100 | – |
| Durgapur | 63 | 4,300 | +100 | +300 |
| Raipur | 63 | 4,900-5,000 | +350 | +750 |
| Bellary | 63 | 4,900-5,000 | +250 | +550 |
Basic prices in INR/MT
* loaded to wagons
Source: SteelMint Research
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