Domestic pellet prices in India continue to remain under pressure witnessing sharp fall of INR 150-500/MT W-o-W across all major markets except central India.
West India (Rajasthan) based pellet maker – Jindal SAW has slashed pellet prices by INR 500/MT against SteelMint’s last week’s assessment. Current offers for Fe 63% grade pellets have moved up to INR 6,400/MT (delivered Kandla).
Towards the beginning of last week, offers were around INR 6,900/MT which came down to INR 6,700/MT towards the week end following global iron ore price decline.
Spot iron ore fines index in China fell by USD 6/MT W-o-W to USD 64/MT, CFR China. Amid a decline in iron ore futures and spot prices, imported lump offers to India also moved down,
Offers for South African lump are heard around USD 81-82/MT, CFR India.
Eastern India pellet prices down by INR 300/MT-:
Eastern India based market participants shared dull buying interest, the decline in P-DRi prices and fall in export prices the prominent reasons behind the decline in domestic offers. In Durgapur (eastern India) pellet offers have come down by INR 300/MT W-o-W.
Reference pellet price assessment for Durgapur stands at INR 5,500/MT this week. A significant decline in P-DRI prices in Durgapur was seen to INR 18,600/MT against 20,000 last week.
Also, Indian pellet export price assessment has come down to USD 107-109/MT, CFR China, down by USD 4-5/MT W-o-W.
Southern India (Ex-Bellary) based pellet manufacturers have decreased its offers by 200/MT W-o-W. Current price assessment for Fe 63% grade pellets is heard around INR 7,000 (ex-Bellary) against INR 7200/MT reported last week.
Trade sources reported that the market has turned dipper owing to year-end pressure (31st Mar’18) and declining sponge prices in the market.
Indian Pellet Reference prices as on 27th Mar’18-:
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5,300 |
| Durgapur | 63 | 5,500 |
| Jamshedpur | 63 | 4,900-5,300 |
| Raipur | 63 | 6,500 |
| Bellary | 63 | 7,000 |
| Kandla** | 63 | 6,400 |
*loaded to wagons
**delivered
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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