Domestic pellet offers in India have increased sharply this week. A significant hike in offers was seen in eastern, central and western parts of the country. Pellet manufacturers in Barbil have raised offers to INR 6,400-6,500/MT (loaded to wagons) and that in Central India (Ex-Raipur) to INR 7,200/MT.
However, some trade activities at increased prices were noticed. Some Raipur based pellet makers were heard to have concluded a deal at INR 7,200/MT.
Factors behind Domestic Pellet Price Hike-:
Iron ore supply reduction post mines closure– Owing to this five working iron ore mines Mesco Steel, Serajuddin & Company, government-owned IDCOL and National Enterprises in Odisha have gone out of operations as they failed to pay out the penalties, as per deadline was given by honorable Supreme Court till 31st Dec’17, iron ore supply in the state is likely to be impacted. These mines have an annual capacity of 20 MnT iron ore.
Odisha merchant miners & NMDC raised fines price – Odisha based merchant miners has increased further iron ore prices this week also. Lump prices have increased by INR 500/MT and fines by INR 300/MT. Prior to this Miners was revised prices for two times in the month of dec’17. NMDC has also raised fines prices by INR 500/MT for January deliveries.
Increasing P-DRI prices– P-DRI (78 FeM) prices in Durgapur have increased marginally to INR 21,100/MT (del) against INR 21,000/MT a week ago. In Raipur. P-DRI (80 FeM) prices have increased to INR 21500-600/MT (ex-works) against INR 20950/MT (ex-works) a week ago.
Indian Pellet Reference prices as on 02rd Jan’18
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 6,400-6,500 |
| Durgapur | 63 | 7,000 |
| Raipur | 63 | 7,200 |
| Jharsuguda | 63 | 6,800 |
| Bellary | 63 | 7,000 |
| Kandla** | 63 | 6,850 |
*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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