India: Increase in Pellet Export Demand Drives Up Domestic Prices

Durgapur Pellet Prices Move Up Further on Short Supply

Week 33 witnessed further increment in Durgapur domestic pellet prices. Last week prices were seen hovering in the range of INR 3,500-3,600/MT (basic) have now gone up and are presently at INR 3,700/MT (basic). Prices have moved up on short supply as Rashmi Metaliks is not offering pellets in domestic market and has finalized the export shipment. Presently in West Bengal Shyam Sel and Super Smelters are quoting INR 3,700/MT (basic).

Jharsuguda pellet offers have also moved up by INR 100/MT W-o-W and are currently seen at INR 3,400/MT (basic).

Barbil pellet makers restrain from domestic sales – Comparatively higher realization in export has made Barbil pellet makers to go for export rather than going for domestic sales. Presently Jindal Steel & Power and Arya Iron & Steel are not seen giving offers for domestic market. Last offers were heard in the range of INR 2,850-3,000/MT (loaded to wagons).

Raipur pellet makers speculate improved demand after strike closure – Pellet manufacturers in Raipur have marginally raised their offers this week amid expectations that after the strike closure of mini steel plants, demand will pick up. Presently Raipur pellet offers are seen at INR 3,900-3,950/MT (basic) which last week seen at INR 3,900/MT (basic). However market sources shared that no significant buying has been seen at INR 3,900/MT.

Southern India pellet offers remain stable- Bellary pellet offers have remained stable on weekly premises. Pellet makers shared amid stagnant demand prices continue to remain unchanged this week and are sen at INR 4,300-4,350/MT (basic).

Indian Pellet Prices as on 09 Aug’16

Basic prices in INR/MT
* loaded to wagons
Source: SteelMint Research

Trade-wise:

1. Jayaswal Neco is offering pellets at INR 3,980/MT (basic, after VAT exemption)
2. BMM Ispat is offering pellets at INR 4,350/MT (basic)