India: Domestic Pellet Prices in Eastern India Slide Further

Domestic pellet prices in eastern India continue to witnessing fall of up to INR 100-300/MT W-o-W. However, in other markets pellet prices have remained unchanged this week.

Central and eastern India based pellets maker shared dull buying interest due to the high expectation of price cut by the iron ore miners in upcoming days and fall in buying activities has resulted in falling domestic pellet prices.

In Durgapur (eastern India) pellet price assessment has come down further by INR 200/MT W-o-W.

Few trade sources reported that the mostly pellet makers have adopted the wait and watch approach for the next few days. They are watching the market closely for the iron ore price movement.

Reference pellet price assessment for Durgapur stands at INR 5,100-5,400/MT this week. P-DRI prices have decreased by INR 300/MT W-o-W at INR 18,200/MT.

Indian pellet market update: Week 14

1. Southern India (Ex-Bellary) based pellet manufacturers have kept pellet offers unchanged. Current price assessment for Fe 63% grade pellets is heard around INR 7,000 (ex-Bellary) same as from the last few weeks no change amid low demand.

2. Western India pellet maker Jindal SAW has kept offers unchanged at INR 6400/MT (delivered Kandla).

3. As per sources, an eastern India based pellet maker has concluded a deal of 50,000 MT pellets for end April arrival at USD 110/MT, CFR. As per sources, the deal has not been concluded to Chinese based mills.

Indian Pellet Reference prices as on 03rd Apr’18-:

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