India’s domestic pellet market saw a 54% m-o-m decline in trade volumes to 346,300 tonnes (t) in October compared to 745,400 t in September, as per SteelMint data.
Subdued trading and lower bids were the key reasons behind the sharp fall in trade volumes last month. The festive season saw limited trades in the market.
In addition, the fall in sponge iron and billets prices kept trade volumes low. Monthly average prices of sponge iron (PDRI) in Raipur stood at INR 31,600/t DAP in October, down 2.2% m-o-m, while billets prices in the region were at INR 47,570/t, almost stable m-o-m.
Current prices of sponge iron and billets are even lower at INR 28,600/t exw and INR 41,500/t exw, respectively, as assessed on 16 November.
Pellet prices vary across regions
Prices of pellets in most key markets increased marginally m-o-m in October except in Bellary (-3.2%) and Kandla (stable), as per SteelMint’s assessment.
A Chandrapur, Maharashtra-based miner was heard offering iron ore lumps at competitive prices to buyers in the central and eastern regions, capping a rise in pellet prices. Eastern Indian buyers were active in restocking ahead of the festive season, supporting prices in the region. Meanwhile, prices in Raipur were largely stable as steelmakers procured iron ore lumps from NMDC and the aforementioned Maharashtra-based miner.
SteelMint’s pellet index, PELLEX, remained almost stable m-o-m at INR 8,140/t DAP Raipur in October.
Outlook
Domestic pellet prices are expected to remain under pressure in the coming days. There is a lack of clarity among market participants about future trends in the market.
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