- Sixth pellet price hike in Raipur during August
- Higher sponge iron realisations support pellet prices
Pellet manufacturers in Raipur raised Fe 62.5/63% (±0.5%) pellet offers by INR 200/t ($2/t) to INR 10,800-10,900/t ($114-115/t) ex-works, marking the sixth hike in August. Cumulative price increases during the month have been around INR 200-300/t.
The latest hike was driven by short-term supply tightness, with some Raipur-based pellet sellers keeping sales closed. This has reduced spot supply and strengthened sellers’ pricing power. Also, availability of iron ore in the rainy season is also a concern.
Recently, Lloyds Metals and Energy increased its iron ore lump and fines offers by INR 250/t ($2.5/t) and pellet offers by INR 500/t ($5/t) in Chandrapur, Maharashtra, effective 29 August.
Meanwhile, P-DRI prices in Raipur surged INR 1,200/t w-o-w to INR 28,500/t ($300/t) on 31 August, supported by strong buying activity. Higher sponge iron realisations have improved downstream margins, enabling producers to absorb higher pellet costs and supporting further firmness in pellet offers.
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