Pellet buying interest in domestic market continued to remain dull this week. Market participants reported limited trades.
Central India based market participants shared limited buying interest from sponge manufacturers. Although pellet offers from major makers are heard around INR 7,000/MT (ex-works, GST extra). However, buying interest is heard at INR 100-200/MT lower than the present levels.
P-DRI prices have increased to INR 19,950/MT against at INR 19,400 -19,500/MT (ex-Raipur). Despite a hike in P-DRI prices, pellet prices have not witnessed any major changes this week.
Market participants mentioned that Sponge iron makers prefer NMDC lump as it is cost effective.
Eastern India Pellet offers remain range bounds:
Durgapur pellet offers have been declining over the last few weeks. This week offers have remained range bound noticing marginal fluctuations of around INR 50/MT. .Reference pellet price assessment for Durgapur stands at INR 6,000-6,300/MT this week. P-DRI prices are hovering at INR 20,500-20,550/MT, up by around INR 300/MT on weekly premises.
A Jamshedpur based pellet maker was heard to have concluded a quantity deal of INR 5,500/MT (ex-plant).
Due to a festive holiday of Maha-Shivratri, southern pellet makers were not actively offering in the market today.
Indian Pellet Reference prices as on 13th Feb’18-:
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5,800 |
| Durgapur | 63 | 6,000-6,300 |
| Jamshedpur | 63 | 5,600-5,700 |
| Raipur | 63 | 7,000 |
| Kandla** | 63 | 7,000 |
*loaded to wagons
**delivered
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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