India: Jindal SAW Cut Pellet Offers over Falling Global Iron Ore Prices

One of the largest Indian pellet makers Jindal Saw have reduced its pellet offers by INR 300/MT  compared to last week’s prices bringing it down at  INR 6,750/MT, delivered Kandla over the falling global iron ore prices. A week ago Jindal SAW offered its pellets at INR 7050/MT, delivered Kandla.

When iron ore index last assessed stood at USD 62/MT, CFR China for Australian fines (Fe 62%) on 29^th September, 2017 it was down USD 17/MT from USD 79/MT, CFR China where it opened in the beginning of the month. Fall in global iron ore prices have made imported lumps cheaper following which the pellet maker has reduced offers.

Central Indian, Raipur based pellet makers have reported lower quotes amid dull buying and  zero inquiries, the offers are heard at INR 5,500 to 5,700/MT over week long falling sponge prices. The halted sponge production affected the pellet offers in the region. A deduction of around INR 300 and 200/MT compared to last week was notified by the sources.

In East India Durgapur based pellet maker have reported no price change against last week. However the market opened dull with small deals after the festivities. Amidst dull sentiments the market offers are stable at INR 5,100/MT

A pellet maker at Jharsuguda has also kept the prices unchanged at INR 5300/MT.

The offers in South Indian pellet market have been reduced by INR 100/MT with very less inquiries. The current offers are at INR 6300/MT.

Indian pellet export offers – Assessment for Indian Pellet export offers stand stable at USD 116-120/MT, CFR China for Fe 64% grade pellets. However owing to prevailing week long holidays in China, pellet trade activities have remained thin.

Indian Pellet Reference Prices as on 3^rd Oct’17

Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
*Loaded to Wagon
**Delivered