India: Domestic Pellet Offers Increase on Improved Trades

Domestic pellet prices have remained strong on preference from sponge manufacturers ahead of monsoons, however, in southern India pellet prices declined on limited trades.

Domestic pellet offers in India have increased this week by INR 100-200/MT. However, in Southern India pellet offers have remained stable.

Central India Pellet maker raise offers-:

Central India (Ex-Raipur) pellet prices have increased significantly this week. Assessment for this week is at INR 6,300-6,400/MT against last week’s assessment of INR 6,000-6,100/MT. However last deals reported were at around INR 6,200-6,300/MT.

P-DRI prices assessed at INR.20,000/MT (basic) compared to INR 19,700 /MT a week ago.

Durgapur Pellet trade prices remain high-:

In Durgapur (eastern India) reference pellet price assessment stands at INR 7,000-7,200/MT (delivered) this week against last week’s assessment INR 6,900-7,000/MT. Pellet prices in Durgapur have increased by INR 100/MT W-o-W. Pellet remained a preference over iron ore for sponge manufacturers over logistics constraints.

Trade sources reported there is still lack of raw material prevailing in eastern India. As a result of this pellets P-DRI prices have also increased, this week assessment INR 22,200/MT against INR 21,800/MT (delivered) last week.

Jindal SAW increase pellet offers -:

West India (Rajasthan) based pellet maker – Jindal SAW has increased pellet prices further by INR 150/MT. Current offers for Fe 63% grade pellets have moved up to INR 7,050/MT (delivered Kandla) against a previous assessment of INR 6,900/MT. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan)

Indian Pellet Market update: Week 25, 2018

1. Southern India (Bellary) based pellet makers have kept prices unchanged to INR 6,600/MT against INR in line with last week prices. Despite P-DRI price assessment has increased by INR 300/MT to INR19, 600/MT this week against INR19,300/MT last week.

2. One of the Pellet makers in Durgapur concluded a deal of 2000 MT of Pellets at INR 7,200/MT this week.

Indian Pellet Reference prices as on 19th Jun’18

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