India: Domestic Pellet Offers remain Supported Amid High Export Prices

Strong demand for Indian pellets in China has resulted in aggressive export deals by Indian pellet manufacturers and traders. This has supported eastern India pellet prices too.

Domestic pellet prices in eastern India remained firm amid good demand from sponge manufacturers, good realizations in pellet export and hampered iron ore supply amid less rake availability from Odisha based merchant mines.

This week, Indian pellet export deals were heard to have concluded in the range of USD 120-123/MT, CFR China.

Bhilwara (Rajasthan) based pellet maker – Jindal SAW increased its pellet offers by INR 200/MT. Latest offers for Fe 63% grade pellets are at INR 6,400/MT (delivered Kandla) against previous assessment of INR 6,200/MT (delivered Kandla).

Global iron ore fines (Fe 62%) index remain supported at around USD 63/MT, CFR China. Iron ore prices have increased by USD 2-3/MT this week amid surge in futures. Following this, imported iron ore lump prices have increased.

Trade-wise:

1. Jharsuguda based pellet maker – Shyam Metaliks & Energy sold nearly 5,000 MT pellets around a couple of days at INR 5,400/MT. Latest offers assessed at INR 5,500/MT.

2. West Bengal based pellet maker Super Smelters sold nearly 7,000 MT at around INR 5,400/MT, a couple of days back.

3. Raipur (central India) based pellet manufacturers have concluded pellet deals towards end of last week at around INR 5,300/MT.

4. Durg based pellet maker – Raipur Power & Steel is offering pellets at INR 5,450/MT (ex-Durg)

5. Barbil based pellet maker – Jindal Steel & Power is offering pellets in domestic market at INR 4,900/MT (loaded to wagons)

Indian Pellet Reference Prices as on 08 Nov’17 

Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
*Loaded to Wagon
**Delivered