India: Domestic Pellet Market Soften Following Plunge in Sponge Prices

Domestic pellet offers in India have decreased this week by INR 50-300/MT. However, in western India India pellet offers have remained stable.

Durgapur Pellet Price Decreased Sharply -:

In Durgapur (eastern India) reference pellet price assessment stands at INR 6,800/MT (delivered) this week against last week’s assessment INR 7,100-7,200/MT. Pellet prices in Durgapur have decreased by INR 300/MT W-o-W. Market participants reported weak demand from sponge manufacturers amid a decline in P-DRI prices.

Sponge prices have also decreased sharply resulted in decreasing pellets offers. P-DRI Prices this week decreased significantly by INR 1,200/MT to INR 21,000/MT against INR 22,200/MT (delivered) last week.

Central India (Ex-Raipur) pellets offers remain stable-:

Central India (Ex-Raipur) pellet offers have remained stable this week. Assessment for this week is at INR 6,250/MT against last week’s assessment of INR 6,300-6,400/MT. However last deals reported were at around INR 6,100.
P-DRI prices assessed at INR.19,500/MT (basic) compared to INR 19,900 /MT a week ago.

Southern Indian Pellets Prices decline further this Week-:

Southern India (Bellary) based pellet makers have decreased prices INR100/MT to INR 6,500/MT against INR 6,600/MT last week prices. P-DRI price assessment has decreased by INR 400/MT to INR19, 500/MT this week against INR19,900/MT last week.

Indian Pellet Reference prices as on 26th Jun’18

Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
*loaded to wagons
**delivered
Source: SteelMint Research