West India (Rajasthan) based pellet maker – Jindal SAW has decreased pellet prices by INR 300/MT. Current offers for Fe 63% grade pellets have moved down to INR 8,500/MT (delivered Kandla) against the previous assessment of INR 8,800/MT at last week. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).
SteelMint has learned from the sources that the competitive offers from central India delivered to western India (Gujarat) have kept domestic pellet prices under pressure.
Spot iron ore prices increased amid increased future and shortage of global supply. Fe 62% fines price increased to USD 96/MT, CFR China which was USD 93/MT, CFR a week ago. Offers for imported South African lump is assessed at USD 120-122/MT, CNF India.
Southern India pellet makers offers remain on higher side-:
Southern India (Bellary) pellet offers for Fe 63% grade has increased further by INR 200/MT this week. SteelMint’s assessment for Bellary origin pellets at INR 7,400-7,600/MT (basic) against last week’s assessment at INR 7,200-7,400/MT amid raw material availability issue.
The iron ore movement is hampered from roadways as well as railways. SteelMint learned from the market sources that DMG (Department of Mines and Geology, Govt of Karnataka) has been making changes in its software system. ILMS application is integrating with the forest department, buyer, route, vehicle, and destination altogether at one platform for providing better service to the clients. It will take a little longer time to get started a full fledge of its operations.
Ex-Bellary P-DRI price increased by INR 500/MT to INR 19,500/MT against last week assessment INR 19,000/MT.
Raipur pellet market observed low bookings at raised offers-:
Raipur (Central India) based pellet makers increased offers at INR 6,400/MT after export deals getting concluded. As per the reports no deals recorded at revised offers.
Durgapur based pellet offers stable following decline in sponge prices
Durgapur pellet price assessment stands at INR 5,800-5,900/MT in line with the last week assessment. P-DRI prices for Ex-Durgapur increased to INR 19,100/MT against INR 19,400/MT a week ago.
Indian pellet trade updates-:
—Jajpur based Brahmani River Pellets has kept the offers firm at INR 6,700/MT to Kalinganagar based units.
—Ex- Raigarh based pellet maker offering pellet at INR 6,000/MT after taking week-long maintenance shut down.
Indian Pellet Reference prices as on 16th April’19
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5,400-5,500 |
| Jharsuguda | 63 | No offers |
| Durgapur | 63 | 5,800-5,900 |
| Jamshedpur | 63 | 5,800-6.000 |
| Raipur | 63 | 6300-6,400 |
| Bellary | 63 | 7,400-7,600 |
| Kandla** | 63 | 8,500 |
**delivered
*loaded to wagons
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
Leave a Reply