India: Domestic Pellet Offers Up in Week 33

The pellet offers have seen a rise of INR 450/MT in East India with a considerable rise in prices in other parts as well. Durgapur based pellet maker is heard to have sold 10000 MT pellets (Fe 63%) at INR 5,000/MT. The current offers are at INR 5000-5200/MT.

Pellet sponge offers as well have increased in the central India by INR 1,000-1,500 MT W-o-W.

The iron ore lump purchases have slowed down due to monsoon. According to the sources that are connected to SteelMint informed that buying inquiries for lump are low comparatively as sponge manufacturers are preferring pellets over iron ore.

Raipur Pellet Prices Up:
SteelMint analysed the Raipur pellet prices for Fe 63% against NMDC Baila Lumps Fe65%(6-40 MM) and noticed that the prices have moved up considerably for the alternative feeder in recent times.

Jindal SAW increased offers by IN 200/MT
Jindal SAW quoted current offers for Fe 63% pellets are at INR 6,600/MT as was expected to go up by INR 200/MT earlier reported by SteelMint. The reason for the increased offers is the strong global iron ore prices which have impacted the imported lump prices positively.

All most all parts of the country is experiencing the bullish sentiments with few deals already taken place along with sizable number of inquiries as market sources reported.

Prices Up in South:
The pellet prices have seen an upward movement in southern India as well. Bellary based pellet maker have reported an increase of INR 450/MT W-o-W and the same source confirmed a deal of 20,000 MT at INR 6400/MT.

Indian Pellet Prices as on 8th Aug’17

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