Domestic pellet offers in India have seen a hike in eastern and southern parts of the country. In western India and central India, pellet offers have remained unaltered.
Eastern India Pellet makers raised offers amid a hike in iron ore prices-:
In Durgapur (eastern India) reference pellet price assessment stands at INR 6,600/MT (delivered) this week against last week’s assessment of INR 6,500/MT. Pellet prices in Durgapur have increased by INR 100/MT W-o-W. Last week Durgapur pellet makers increased prices by INR 700/MT. Odisha based miners have recently raised iron ore fines prices by INR 150/MT.
According to SteelMint’s assessment, current prices are hovering at almost 4-month high as towards the end of Jan’18 prices were hovering in the range of INR 6,700-6,800/MT.
As per the sources reported to SteelMint, iron ore prices hike by Odisha merchant miner on 4th June 2018 led the prices to surge in the pellet prices of Durgapur. Lack of iron ore rake availability is still prevailing in eastern India. As a result of this material, delivery has been disrupted. This has boosted demand for pellets. P-DRI prices have increased sharply by INR850/MT to INR 21,300/MT this week against INR 20,450/MT (delivered) last week.
Central India (Ex-Raipur) pellet prices assessment for this week is INR 6,000-6,100/MT, similar to last week assessment. But P-DRI prices have increased sharply in a week a time by INR 750/MT at INR20, 400/MT (basic) compared to INR 19,650 /MT a week ago.
Indian Pellet Market update: Week 23, 2018
1. Southern India (Bellary) based pellet makers have kept prices unchanged to INR 6,800-6, 900/MT against INR in line with last week prices. P-DRI price assessment has also stable in Southern India to INR19, 800/MT this week similar to last week assessment.
2. One of the Pellet makers in Durgapur concluded a deal of 3000 MT of Pellets at INR 6600/MT last week.
Indian Pellet Reference prices as on 06th Jun’18
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5,900 |
| Durgapur | 63 | 6,600 |
| Raipur | 63 | 6,000-6,100 |
| Bellary | 63 | 6,800-6,900 |
| Kandla** | 63 | 6,750 |
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
*loaded to wagons
**delivered
Source: SteelMint Research
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