Indian Pellet prices have fallen slightly on the backdrop of falling prices of Pellet sponge. The demand continues to remain weak with limited trading activities.
“Prices of Pellet sponge in eastern India have fallen by INR 700/MT in last one week. On similar lines, prices of other finished & semi finished products have also witnessed downtrend. Owing to falling prices, Pellet demand has also weakened.” – shared a market participant
Pellet makers are seen offering considerable discounts on bulk quantity purchases. Pellet makers mentioned that scenario is likely to remain stable in the short run as re-opening of suspended Iron ore mines in Odisha will still take considerable amount of time.
In Central India, Pellet prices have witnessed a fall of INR 50/MT W-o-W. Raipur Pellet offers are at INR 6,000/MT (basic). Sources shared that prices have bottomed out and there is hardly any room for further correction.
A minor correction in Pellet prices was noticed in southern region of India. Fe 62% Pellets are offered at INR 6,200-6,300/MT (basic) at Bellary, Karnataka. Southern India based Sponge iron manufacturers have switched to imported Iron ore owing to rising imports of lump from South Africa. Also, fines prices in recent Karnataka e-auctions have witnessed reduction.
Indian Pellet Prices
| City | Grade | Prices | W-o-W | M-o-M |
| (Fe %) | ||||
| Barbil* | 63 | 5,200 | 0 | -500 |
| Keonjhar* | 64 | 4,700-4,800 | -150 | NA |
| Raipur | 63 | 6,000 | -50 | -150 |
| Jamshedpur | 63 | 5,300 | -200 | -700 |
| Jharsuguda | 63 | 5,500 | -100 | -400 |
| Durgapur | 63 | 5,600-5,700 | -200 | -650 |
| Bellary | 62 | 6,200-6,300 | -50 | -250 |
Basic prices in INR/MT
*as per loaded into wagons
NA: Not Available
Source: SteelMint Research
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