Indian Pellet prices which shot up sharply in the month of May, after the Supreme Court had ordered temporary suspension of mining activities in Odisha, have started showing resistance and corrected upto INR 900/MT (USD 15/MT) W-o-W.
Current prices in Barbil (Odisha) are standing at INR 8,000/MT (USD 135/MT) for 63.5% Pellets, down by almost INR 900/MT from last week. Similarly, prices in Jharsugda (Odisha) have come down to INR 8,200-8,600/MT (USD 138-145/MT) ; drop of INR 600-700/MT (USD 10-12/MT) in a week. Tatanagar is offering Pellets at INR 8,000-8,100/MT (USD 135-137/MT) (basic) and Raipur at INR 9,000-9,300/MT (USD 152-157/MT) (basic).
“We have offers for Fe 63% Pellets at around INR 8,200/MT (USD 138/MT) (Ex-Jharsugda). With falling Sponge iron prices, buyers were holding purchases. We are expecting good demand at new prices as fines is not available in Odisha based mines to make Pellets and simultaneously Iron ore crisis is increasing every passing day.
It’s becoming difficult to procure raw material for most of the Pellet plants. And, if Pellet production will be hampered, Sponge iron plants will close down as Pellet can be procured on daily cash with petty amount,” said a Pellet trader based in eastern region of India.
Karnataka Pellet (Fe 62/62.5) manufacturers have quoted prices at INR 8,100-8,400/MT (USD 136-141/MT) (basic). Fe 60/60.5 Pellets are at INR 7,200-7,300/MT (USD 121-123/MT) (basic).
Indian Pellets Prices in INR/MT as on Week 24 (09-15 Jun, 2014)
|
State |
Particular |
Size |
Grade |
Price (Basic) |
W-O-W |
M-O-M |
|
Indian Pellets prices (in INR/MT) as on Week 24, 2014 ( 09 Jun – 15 Jun) |
||||||
|
Odisha |
Barbil |
6-20MM |
63 |
8,000 |
– 900 |
+ 1,050 |
|
Jharsugda |
6-20MM |
63 |
8,400 |
– 350 |
+ 1,225 |
|
|
Keonjhar |
6-20MM |
63 |
7,800 |
– 650 |
+ 1,400 |
|
|
Chattisgarh |
Raipur |
6-20MM |
63 |
9,150 |
– 250 |
+ 1,200 |
|
Jharkhand |
Jamshedpur |
6-20MM |
63 |
8,050 |
– 750 |
+ 650 |
|
Karnataka |
Bellary |
6-20MM |
62 |
8,200 |
+ 50 |
+ 125 |
|
Mangalore |
9-20MM |
63 |
8,250 |
0 |
+ 475 |
|
All prices are basic, Excise duty @12.36%; VAT as applicable
Barbil- Prices loaded to Wagons
Source: SteelMint Research
Sponge Prices (C-DRI) corrected upto INR 1,200/MT (USD 20/MT)
Sponge iron prices in domestic market have corrected upto INR 1,200/MT in last one week owing to power cut (which has led to fall in production by Induction furnaces) and weak demand in finish steel because of monsoon.
|
Region |
Particular |
Grade |
Price (Basic) |
Change |
W-O-W |
M-O-M |
|
Indian Sponge Iron (C-DRI) prices (in INR/MT) as on date 10-Jun-2014 |
||||||
|
North India |
Mandi Gobindgarh |
78-80 FeM |
25,000 |
0 |
– 600 |
+ 800 |
|
East India |
Rourkela |
78-80 FeM |
19,900 |
0 |
– 1,000 |
+ 450 |
|
Durgapur* |
78-80 FeM |
20,700 |
0 |
– 1,200 |
+ 450 |
|
|
Central India |
Raipur* |
80 FeM |
21,700 |
+ 100 |
– 900 |
– 400 |
|
Raigarh* |
79-80 FeM |
21,200 |
+ 100 |
– 1,000 |
+ 350 |
|
|
South India |
Bellary |
75 FeM |
20,000 |
0 |
– 400 |
+ 200 |
Source: SteelMint Research
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