East India Pellet Makers Reluctant to Reduce Offers

Despite limited buying, pellet manufacturers in east India are unwilling to lower offers. Pellet prices in east India are already quite low and availability of cheaper lump has further worsened the pellet market.

It was heard to through market participants that despite having considerable inventories at their plant, pellet makers are resistant to lower their offers. They also shared that buying is very slow with majority of sponge manufacturers have shifted to lump.

Though pellet sponge prices in east India noticed an improvement last week (up by INR 100/MT W-o-W) but pellet makers are still uncertain about its continuity. Pellet offers in east India remain unchanged against last week. Barbil pellet prices continue to remain at INR 3,000/MT (loaded to wagons). Durgapur pellet prices are in the range of INR 3,600-3,800/MT (basic).

Central India pellet prices down by INR 150/MT

Pellet (Fe 63%) prices in central India have fallen by INR 150/MT W-o-W and are in the range of INR 4,100-4,300/MT. Pellet makers are hopeful that with prices of semi finished steel products witnessing increase pellet prices might get some support.
In southern India pellet prices have fallen this week and are in the range of INR 4,300-4,400/MT (basic) for Fe 62% pellets.

Jindal SAW pellet offers fall further

Western India pellet maker-Jindal SAW has further lessened its offers over cheaper imported lump offers by INR 100/MT. Current offers are at INR 4,200/MT for Fe 63% pellets and INR 4,500/MT for Fe 65% pellets (delivered Kandla). Looking at consistent downtrend of global iron ore prices domestic pellet prices might fall further.

Indian Pellet Prices as on 08 Dec’15

Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research