Pellet manufacturers based in eastern region of India have further cut prices by INR 400-500/MT owing to falling Sponge iron prices.
Sources mentioned that current offers from Barbil (Odisha) are at around INR 7,500/MT (loaded to wagons) for Fe 63%. Whereas same grade is being offered at INR 7,500/MT (Ex-Tatanagar).
Jharsugda based Pellet manufacturer is offering 63% Fe Pellet at INR 7,800/MT (basic) and at Raipur it is being offered at INR 8,800/MT (basic). Pellet manufacturers had cut prices upto INR 900/MT earlier this week.
” Though Pellet prices have come down , buying interest is still missing. There is less scope of further correction. Prices may fall by INR 200-300/MT if Sponge iron demand does not pick up,” said a Pellet trader based in eastern region.
On the other hand supply of Iron ore lumps from Odisha has been low after Supreme court ordered to ban mining operation for 10 merchant mines in Odisha.
” Certainly, there is scarcity of Iron ore lumps in Odisha. Mines, which are operational in Odisha are booked for the next few weeks and ample supply of Pellets have helped us to survive,” said a Sponge iron manufacturer.
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