Domestic pellet prices in India have observed a mixed response this week. Few pellet makers in eastern and southern India have reduced offers this week by INR 100-200/MT. However. Jindal SAW- western India based pellet maker has raised pellets prices by INR100/MT this week.
Durgapur based pellet makers reduce offers over the decline in P-DRI prices-:
In Durgapur (eastern India) reference pellet price assessment stands at INR 6,600-6,700/MT (delivered) this week against last week’s assessment INR 6,900-7,000/MT. The decline in semi-finished steel prices over weak demand in finished steel over monsoons has led to a reduction in pellet offers.
P-DRI prices have also decreased this week at Durgapur to INR 20,600/MT against last week assessment of INR 20,900/MT.
Barbil pellet offers remain unchanged at INR 6,500/MT (loaded to wagons) and pellet (Fe 64%) offers from BRPL are heard at around INR 6,600/MT (ex-Jajpur).
Central India pellet makers hopeful for high prices post NMDC price hike – Central India (Ex-Raipur) pellet offers are hopeful of trades taking place at the quoted offers. Today NMDC announced a hike of INR 150/MT in fines.
Pellet price assessment for this week is at INR 6,600/MT against last week’s assessment of INR 6, 500-6,600/MT. However, SteelMint learned from the sources that last week pellets makers were quoting INR 6, 600/MT for this week but buying interest was at INR 100-150/MT less than the offers.
P-DRI prices decreased sharply by INR 450/MT to at INR.19,550/MT (basic) compared to INR 20,000 /MT a week ago.
Jindal SAW hike pellet offers further-: West India (Rajasthan) based pellet maker – Jindal SAW has increased pellet prices consistently from the last few weeks, by INR 100/MT. Current offers for Fe 63% grade pellets have moved up to INR 7,350/MT (delivered Kandla) against a previous assessment of INR 7,250/MT. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).
Southern India pellets makers also reduce offers-:
Southern India (Bellary) based pellet makers have decreased prices by INR100/MT to 6,500/MT against INR 6600/MT last week. Despite P-DRI price assessment has also declined by INR100/MT to INR18, 400/MT this week against INR18,500/MT last week.
Indian Pellet Reference prices as on 10th Jul’18
|
City
|
Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 6,500 |
| Durgapur | 63 | 6,600-6,700 |
| Raipur | 63 | 6,600 |
| Bellary | 63 | 6,500 |
| Kandla** | 63 | 7,350 |
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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