Godawari Power & Ispat Limited – largest pellet manufacturer in Central India has hiked offers by Rs 200/MT (USD 3) today, SteelMint learned from market sources.
The company has an installed pelletization capacity of 1.8 MnT p.a. and currently operating at 100% rated capacity.
The pellet maker is currently offering Fe 64/63% grade pellets at INR 6,800/MT (basic). Trade sources mentioned that the pellet maker also executed deals of around limited quantity of pellets at INR 6,600/MT (basic) following which it has raised offers. Also the pellet maker has concluded pellet deals in considerable quantity at INR 6,500/MT.
According to SteelMint sources, the pellet maker may increase offers further.
Central India pellet prices have climbed to 34 months high as these price levels were last seen in the beginning of Feb 2015.
Why are domestic pellet offers rising?
Surge in P-DRI prices – There is a marked increase in prices of sponge in Eastern and central India. Indian Sponge Iron Prices have hit 40 months high on fresh deals. The P-DRI prices in Raipur stood at INR 20,000-20,100/MT (ex-works) as on 22nd Dec’17, up by INR 350/MT D-O-D.
Hike in Iron ore Prices-: Odisha based merchant iron ore miners increased iron prices last week by INR 400/MT in lumps and INR 200/MT in fines.
Lack of Rake availability-: Availability of rake for iron ore has been hampering movement in eastern parts of the country since past couple of months. Sponge makers are seen preferring pellets over iron ore owing to prompt delivery than that of iron ore.
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