Iron Pellet market across India has witnessed no improvement in domestic demand. Prices have either come down or continue to sustain at previous levels.

Sponge iron producers have lowered prices as manufacturers of Ingot and Billet are utilizing limited production capacities and have come down in terms of buying volumes in Pellets.

Prices of semi finished and finished steel products have weakened in the last one week by up to INR 800/MT as rains have slowed down construction activities, resulting in low trading volumes in finished steel products.

Pellet prices are under pressure and might come down further as buyers are unwilling to make purchases at current price levels.

Heavy rains in the Eastern and Southern part of the country have impacted the procurement of Coal and Coke from Gangavaram Port; number of ships available for movement has lessened too.

Current Pellet offers across Indian market:

Barbil: 7000
Keonjhar: 7000
*Jajpur: 7250
Raipur: 8300-8500
Bellary : 7100-7300
(Fe 60): 6100
Tatanagar: 7300
Mangalore: 7700-7800

Basic Prices in INR/MT (Fe 63), *Loaded to wagons

India (Export): 143 FoB
China (Import): 163 CFR

(in USD/MT)

Karnataka based Pellet makers have maintained offers at previous levels, owing to no big change in demand. Only after the Indian festive season, market participants are anticipating an improvement in trading volumes.

It is expected that an Pellet makers based in Keonjhar and Tatanagar might finalize an export deal in the mid of this week. Pellet offers in Chinese market remain unaltered and Iron ore fines (63.5/63 CFR) dropped by USD 3/MT to USD 132/MT CFR in a week’s time.