Central India Pellet Prices Hit 3.5 Years High

With major eastern and central India based pellet makers booking decent quantities for exports, companies are not seen quoting offers in the domestic market. This has resulted in a sharp hike in domestic prices.

Indian pellet offers in the domestic market have increased again sharply from INR 100-550/MT W-o-W. Most of the pellet makers in eastern India are actively looking for exports amid high realization in the global market resulting in limited offers in the domestic market.

Central India pellet offers currently hovering over 3.5 years high – Central India (Ex-Raipur) pellet offers have also increased significantly this week. Assessment for this week is at INR 7,500-INR 7,700/MT against last week’s assessment of INR 7,300/MT (basic). The current price levels were last seen at the end of dec 2014.

As per the sources report to SteelMint, Central India based major pellet makers are not offering amid decent bookings made in exports, led to the material shortage in the market.
P-DRI prices have also been increased sharply by INR 700/MT to at INR 22, 800/MT (basic) compared to INR 22,100 /MT a week ago.

One of the major pellet makers in Central India (Ex-Raipur) has been concluded a 25,000 MT pellets deal at INR 7500/MT following which offers have been increased by INR 200-300/MT.

Durgapur pellet offers up; deals reported- In Durgapur (Eastern India) reference pellet price assessment stands at INR 7,500/MT (delivered) this week, up significantly by around INR 300/MT against last week’s assessment at INR 7,200-7,300/MT. Durgapur based pellet makers confirmed deals to have taken place at these levels.

Barbil based pellet maker Jindal Steel & Power and Arya Iron & Steel are not offering in the domestic market. Also, no offers were heard from Jajpur based Brahmani River Pellets this week.

Southern India pellet offers surge following high Sponge prices -:

Southern India (Bellary) based pellet makers have increased prices to INR 6,900/MT in this week against last week assessment which was INR 6,500-6,600/MT. P-DRI prices have also increased sharply by INR 700/MT to at INR 20, 000/MT (basic) compared to INR 19,300 /MT a week ago.

Indian Pellet Reference prices as on 21st Aug’18

Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
**delivered
Source: SteelMint Research