India: Upsurge Continues in Domestic Pellet Prices

Indian pellet offers in the domestic market have increased from INR 100-600/MT W-o-W. As per market participants report to SteelMint, most of the major pellet makers are still not offering in the domestic market which has led to the shortage of pellets escalating the prices still higher. Very limited deals at high prices were reported to cater to urgent needs. Due to monsoon iron ore availability is also an issue prevailing in eastern and Central India.

Durgapur pellet prices past 3 years high – In Durgapur (Eastern India) reference pellet price assessment stands at INR 8,400/MT (delivered) this week, increased by around INR 400/MT against last week’s assessment at INR 8,000/MT. As per data maintained with SteelMint, Durgapur pellet prices have crossed 3 years high. Durgapur based Rashmi Metaliks is still not offering pellets in the domestic market.

Barbil based pellet maker Jindal Steel & Power and Arya Iron & Steel are also not offering in the domestic market this week. Pellet offers from BRPL, Jajpur is heard at around INR 8,400/MT (ex-plant).

Central India Pellet Offers hit almost 4.5 years high amid limited offers-:
Central India (Ex-Raipur) pellet offers have increased further significantly for almost 4.5 years high. Assessment for this week is at INR 9,000- 9,200/MT against last week’s assessment of INR 8,500-8,700/MT (basic).

As per the sources report to SteelMint, central India based few pellet makers are offering pellets in the domestic market, led to the material shortage in the merchant market. P-DRI prices have also been increased by INR 100/MT W-o-W to INR 24,700/MT (basic).

Southern India pellet offers steady following stability at the sponge prices-: Southern India (Bellary) based pellet makers kept price unchanged to INR 7,800-8,000/MT in this week in line with last week assessment. P-DRI prices have also stable at INR 22,400-22,500/MT in line with last week assessment.

Indian Pellet Reference prices as on 4th Sept’18

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