Domestic pellet prices in eastern India may come under pressure in the near term as few pellet exporters have actively started offering material in domestic market post sharp decline in pellet offers.
Falling iron ore prices in China has lowered Indian pellet export offers by around USD 4/MT W-o-W. Following this, many east India based pellet makers who were actively participating in exports are now compelled to focus on domestic sales. Increased pellet availability in domestic market and comparatively less aggressive buying is likely to pressurize domestic pellet offers, primarily in eastern parts of India.
Durgapur pellet offers have come down by INR 200/MT W-o-W. While in other eastern parts of India, prices have remained majorly stable on weekly premises.
In central & eastern parts of country, pellet prices have remained similar to last week levels. However in west India, prices have come down by INR 200/MT W-o-W.
Indian Pellet Prices as on 11 Apr’17
|
City |
Grade (Fe %) | Basic Prices in INR/MT |
W-o-W |
Remarks |
| Barbil* | 63 | 4,900-5,000 | = | JSPL & Arya continue to hold pellet offers |
| Jharsuguda | 63 | 5,400 | = | Shyam Metaliks & Energy pellet offers at INR 5,400/MT |
| Jamshedpur | 63 | 5,300-5,400 | = | Adhunik Metaliks last pellet deal concluded at INR 5,300/MT. Current offers at INR 5,300-5,400/MT |
| Durgapur | 63 | 5,000-5,300 | -200 | Rashmi Metaliks has reduced pellet offers by INR 200/MT. Current offers at INR 5,000/MT. Other Durgapur based pellet manufacturers were heard offering pellets at INR 5,300-5,400/MT |
| Raipur | 63 | 5,200-5,300 | = | Pellet offers remain unchanged this week. Market participants shared that prices are unlikely to change in the near term. |
| Bellary | 63 | 6,300-6,600 | = | Amid stable bookings from sponge manufacturers, pellet prices in southern India have remained stable this week. |
| Kandla** | 63 | 6,300 | -200 | Jindal SAW has reduced pellet offers. Imported lump offers have also fallen amid declining global prices. South African lump (Fe 63%) grade prices are at USD 79-80/MT, CFR China |
*loaded to wagons
**delivered
Source: SteelMint Research
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