Raipur pellet prices fall by INR 100/MT W-o-W. Limited buying interest may result in further price decline in the near term.
Decline in pellet sponge prices in central India weakened domestic pellet buying. P-DRI prices in Raipur have come down by INR 350/MT on weekly premises. Following this, central India pellet offers have also observed reduction.
Market participants shared that not many sponge plants are presently using pellets as they are seen preferring iron ore over. Buyers are eyeing at price level of INR 4,300/MT (basic). While on the other hand, presently Raipur pellet offers are at INR 4,500/MT (basic).
Limited buying interest may pull down Raipur pellet prices further.
Indian Pellet prices as on 06 Dec’16
|
City |
Grade (Fe %) | Prices | W-o-W |
Remarks |
| Barbil | 63 | No offers | – | JSPL & Arya iron & steel keep themselves away from quoting offers in domestic market over better realizations in export. |
| Jharsuguda | 63 | 4,200 | -200 | Shyam Metaliks & Energy in Jharsuguda sold 3,000 MT pellets at INR 4,200/MT (basic). Demand continues to remain dull. |
| Durgapur | 63 | 4,600-4,700 | +50 | Shyam Sel raised pellet offers by INR 100/MT W-o-W to INR 4,700/MT over increase in Durgapur P-DRI prices. Super Smelters offers stable at INR 4,600/MT (basic). |
| Jamshedpur | 63 | 4100 | 0 | Adhunik Metaliks sold 3,000 MT pellets at INR 4,100/MT. |
| Raipur | 63 | 4500-4,600 | -100 | A Raipur based pellet maker was heard to conclude a quantity deal at INR 4,500/MT. |
| Bellary | 63 | 5,300 | 0 | Southern India pellet makers continue to hold offers amid limited buying interest from sponge manufacturers. |
| Kandla* | 63 | 6,400 | 0 | Jindal SAW continues to hold pellet offers. |
Basic prices in INR/MT
*delivered
Source: SteelMint Research
Trade-wise:
1. Raipur based Jayaswal Neco pellet offers are at INR 4,650-4,700/MT (after VAT exemption)
2. Rourkela based Mahavir Ferro Alloys sold nearly 10,000 MT pellets at INR 4,100/MT (ex-plant). Current offers remain unchanged at INR 4,100/MT
3. Rashi Steel & Power – Bilaspur based pellet maker has kept offers unchanged at INR 4,500-4,600/MT (ex-Bilaspur)
4. West Bengal based – Super Smelters sold 2,000 MT pellets at INR 4,600/MT (basic)
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