India: Pellet Trades in Domestic Market Remain Slow Post Hike in Offers

Domestic pellet offers in India moved up in all major markets. In Durgapur SteelMint’s reference, pellet price assessment stands at INR 6,500/MT ex-plant as against last week’s pellet assessment of INR 6,300-6,400/MT (ex-Durgapur, GST extra). However, participants reported limited trades.

P-DRI prices in Durgapur are currently seen at INR 18,100-18,300/MT (Ex-plant) increased sharply by INR 1,100-1,300/MT against last week at INR 17,100/MT.

Central India based pellet makers raised offers by INR 700/MT in a week’s time to INR 7,000/MT EXW-Raipur. However, the market is yet to witness aggressive buying at increased offers. Raigarh based pellet makers also increased pellet offers by INR 500/MT to INR 6,500/MT (EXW) this week.

India Pellet trade log-:

— Raigarh based pellet maker has sold around 4,000 MT pellet deals at INR 6,400/MT (EXW) yesterday.

— Bellary based pellet makers have sold around 10,000MT pellets at the range of INR 6,300-6400/MT (EXW) in the last couple of days. Mostly pellet makers from Bellary are on wait and watch mode, as they are not offering in the market aggressively.

— Towards the end of last week deals of 3,000 MT pellets concluded to Chandrapur at INR 6,500/MT (Ex-plant); normalizing for freight to Raipur at INR 6,650/MT (DAP, Raipur).

— This week, pellet deals for minimal quantity (around 2,000 MT) reported from Raipur market at INR 7,000/MT (Ex-plant).

SteelMint pellet reference prices as on 24th Dec’19

**delivered
* Loaded to wagon
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research