- Significant Raipur-based suppliers keep sales closed
- Monsoon, Odisha’s ore dispatch issues lifts demand
Pellet manufacturers in Raipur, Chhattisgarh, increased offers for Fe 62.5/63% (±0.5%) grade pellets by INR 300/t ($3/t) to INR 9,600-9,700/t ($100-101/t) exw. This the third hike during the month of July (till date) from Raipur pellet makers. They have increased offer by INR 600-700/t. Hike in the offer was driven by a recent improvement in demand and a short-term supply shortage due to multiple plant shutdowns.
Notably, some Raipur-based sellers have kept their sales closed for a few weeks, with maintenance activities and shortages.
Additionally, from the first week of July, demand for pellets improved over lump ore due to the ongoing monsoon. Pellets are favoured during the monsoon due to reduced moisture absorption and easier transportation.
Another market participant noted that several buyers who had previously relied on Odisha iron ore lumps are now actively exploring pellet purchases following iron ore dispatch issues in Odisha. The shift in procurement preference is expected to provide additional support to pellet demand, particularly as pellets offer better operational efficiency for several sponge iron producers.
Sponge iron (P-DRI) prices in Raipur increased slightly by INR 550/t ($5-6/t) w-o-w to INR 23,550/t ($244-245/t) on 17 July, supported by strong buying activity over the past few days. Market participants reported steady procurement from domestic consumers, with mills returning confidently to the market to replenish inventories amid stable finished steel demand.
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