Domestic pellet offers in India have increased up to INR 750/MT W-o-W. Significant hike in offers were seen in eastern & central parts of the country. Pellet manufacturers in Durgapur have raised offers by INR 750/MT and that in Central India (Ex-Raipur) by INR 550/MT against offers made in the beginning of last week.
However no significant trade activities at increased prices were noticed and buying interest continues to remain thin.
Iron ore rake availability a major concern– Iron ore rake availability has remained a major concern disrupting material movement in eastern parts of the country. Owing to this many sponge manufacturers have shifted to pellet over iron ore which has supported domestic pellet price hike.
Odisha merchant miners further raise fines price- Odisha based merchant miners has increased further iron ore prices effect from today 26 Dec’17. Lump prices have increased by INR 400/MT and fines by INR 200/MT.
Increasing P-DRI prices– P-DRI (78 FeM) prices in Durgapur have increased to INR 21,000/MT (del) against INR 19,100/MT a week ago. Similar price rise has been observed at Raipur. P-DRI (80 FeM) prices in Raipur have increased to INR 20,950/MT (ex-works) against INR 19,500/MT (ex-works) a week ago.
Indian Pellet Reference prices as on 26th Dec’17
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5,800 |
| Durgapur | 63 | 7,100-7,500 |
| Raipur | 63 | 7,000-7,300 |
| Jharsuguda | 63 | 6,800 |
| Bellary | 63 | 7,000 |
*loaded to wagons
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
Trade-wise:
1. Raipur Power & Steels pellet offers are heard around INR 7,200-7,300/MT (ex-Durg).
2. A southern India based pellet maker has sold 10,000 MT pellets at INR 6,900/MT (ex-Bellary).
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