Indian govt. owned units – SAIL Bokaro Steel plant had invited a tender of 80,000 MT pellets which was due on 30th Aug’18. However in the latest update received, the due date has been extended to 11th Sep’18. The steelmaker has 5.2MnT liquid steel production capacity with five 2000-cubic meter blast furnaces.
The tender floated was for pellets with Fe content 63.5% min, 3.2% max Alumina and 4.8% max SiO2.
Perhaps the company has received less participation from the pellet makers over which it has extended the due date. As most of the pellet makers in eastern India are looking for exports and decent bookings concluded by them this month. Following which many pellet makers are not seen offering material in the domestic market which has led to a shortage of pellets in the domestic market.
Domestic Pellet offers high on limited availability- Durgapur (Eastern India) reference pellet price assessment stands at INR 8,000/MT (delivered) this week, hovering by around INR 500/MT against last week’s assessment at INR 7,500/MT.
Similarly, the Jamshedpur pellet offers have also increased sharply by INR 900/MT as against INR 7200/MT last week.
Indian pellet export reference price assessment of SteelMint has surged to the current assessment of USD 137-138/MT, FoB India this week. Thus a sharp hike in export prices is evident.
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