Increasing availability and falling Iron ore lumps prices in domestic market will certainly put pressure on Pellet prices.
It is noteworthy to see that premium between fines, lumps and Pellets are narrowing down in India.
Prices as per loaded to wagons
“On one hand where Iron ore lump prices have come down by INR 400-700/MT, fines prices have just fallen to INR 200-300/MT. It is not easy for merchant Pellet manufacturers to compete with cheaper lumps. Sustainability of Pellet plants is a big question now.” said a Pellet manufacturer based in eastern region.
Odisha based merchant miners have recently cut Iron ore Lump prices by INR 400-700/MT, where as fines prices have been cut by INR 200-300/MT.
Trade Wise:
- Odisha based manufacturers offering Fe 63% Pellets at INR 4,800/MT (loaded into wagons at Barbil) and INR 5,500/MT (Ex- Jharsuguda)
- West Bengal based manufacturer offers at INR 5,400-5,500/MT (basic)
- Chhattisgarh based manufacturer offering Fe 63% Pellets at INR 5,900-6,000/MT
- Jindal Saw offering Fe 63/62% Pellets at INR 5,700 (delivered Kandla)
- Essar offers to Kandla port at around INR 5,200-5,400/MT CIF Kandla
- Karnataka based manufacturers offering Fe 62.5% Pellets at INR 5,600/MT(Ex-Bellary)
- Imported Lumps (6-30mm, Fe 64%) assessed at USD 80/MT CIF Kandla (ready delivery)
- NMDC keeps Iron ore prices unchanged for May
- Odisha based miners offering Fe 63% fines at INR 1,500-1,700/MT (Ex-Mines, including royalty)
Indian Pellet Prices
| City | Grade | Prices | W-o-W | M-o-M |
| (Fe %) | ||||
| Barbil* | 63 | 4,800 | 0 | -550 |
| Keonjhar* | 64 | 4,600 | -50 | -400 |
| Raipur | 64 | 5,900-6,000 | 0 | -200 |
| Jamshedpur | 63 | 5,100 | 0 | -650 |
| Jharsuguda | 63 | 5,400-5,500 | 0 | -300 |
| Durgapur | 63 | 5,400-5,500 | -250 | -500 |
| Bellary | 62.5 | 5,600 | -300 | NA |
Basic prices in INR/MT
*as per loaded into wagons
NA: Not Available
Source: SteelMint Research
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