Iron Pellet producers located in the state of Odisha have been trying to explore export possibilities due to squeezed margins from domestic sales and as prices standing at quite low levels.
We mentioned earlier (article dated July 30) that one of the manufacturers was trying to conclude a 55,000 tons Pellet export deal and received offers at around USD 130-135/MT FoB.
It has finally concluded the deal for a total quantity of 50,000 tons Fe 63 Pellet at USD 138-140/MT FoB Paradeep Port with a Chinese buyer, for shipment during early September.
And, its domestic sales continues to be on hold.
Prevailing Pellet Prices (Rs/MT):
Keonjhar: 5,950-6,300
Barbil: 6,250
Jajpur: 6,300
Jharsuguda: 6,700
Raipur:7,500
Tatanagar:6400
Basic Prices
A couple of other manufacturers have resumed domestic sales at lower prices.
A Keonjhar based Pellet maker has sold out about 12,000-13,000 tons of the material at Rs 5,950/MT to get rid of stock.
Lack of demand in market exists due to weak off take from Sponge iron units and sellers are trying hard to liquidate the existing stock.
Domestic Pellet prices which touched an all time low level, look to have bottomed out.
In the weeks ahead, there is limited room for further correction in offers as a couple of export deals been finalized, have resulted in better margins.
Pellet
For more details, contact
Seema Goenka
(seema@steelmint.com)
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