Iron pellet market continues to remain stable because of poor lumps availability, after the Apex Court ordered to stop operations at mines running under second deemed renewal in Odisha.
Despite falling Sponge iron prices, Pellet prices have shown resistance. Market participants mentioned, as the Indian Iron & Steel industry is in stress to survive with the deprived availability of Iron ore, Pellet prices have managed to remain at previous levels.
Current offers for Fe 64/63% Pellets are hovering in the range of INR 7,300-8,400/MT (USD 120-140/MT) on Ex-Works basis.
Pellet Manufacturers Fear hike in Royalty on Iron Ore by 5%
In the recent union budget, Finance Minister had cleared that hike in royalty on minerals are due since 2012 and revision will be considered this financial year.
If the proposed royalty hike in Iron ore from 10% to 15% takes place then Iron ore and Pellet prices will go up.
Trade Deals
- Last trade from Barbil (Odisha) for 64% Pellets was heard to be settled at INR 7,400/MT (loaded to wagons)
- Raipur based manufacturer sold 64/63% Pellets at INR 8,400/MT (Ex-Works)
- Some trade took place at INR 8,000-8,100/MT (Ex-Durgapur)
- Bellary based manufacturers offering 63/62% Fe Pellets at around INR 7,800-8,000/MT
- Pellet export offers un-viable from India
Indian Iron Pellet Prices
|
Plant Name |
City |
Grade (Fe %) |
Prices |
|
Jindal Steel & Power* |
Barbil |
63.5 |
7,500 |
|
Arya Iron & Steel* |
Barbil |
63 |
7,500 |
|
Bhushan Power & Steel |
Jharsuguda |
63 |
8,200 |
|
Shyam Metalics & Energy |
Jharsuguda |
64 |
8,000 |
|
Brahmani River Pellets* |
Jajpur |
64 |
7,500 |
|
Bajrang Power & Ispat |
Raipur |
63.5 |
8,400-8,500 |
|
Godawari Power & Ispat |
Raipur |
64 |
8,700 |
|
Sarda Energy & Minerals |
Raipur |
64 |
8,400-8,500 |
|
Adhunik Metaliks |
Tatanagar |
63 |
7,250 |
|
Rashmi Metaliks |
Durgapur |
63 |
7,700 |
|
Shyam Sel |
Durgapur |
64 |
8,150 |
|
MSPL |
Bellary |
63 |
8,000 |
|
Xindia Steels |
Hospet |
62 |
7,800 |
|
BMM Ispat |
Hospet |
61 |
7,500 |
|
60 |
7,250 |
||
|
Janki Corp |
Bellary |
60 |
7,100 |
Basic prices in INR/MT
*Prices are as per loaded to wagons
Source: SteelMint Research
Indian Sponge (P-DRI) Prices as on 23 Jul, 2014
|
Region |
Particular |
Grade (FeM) |
Price (Basic) |
Change |
W-o-W |
M-o-M |
|
East India |
Durgapur |
79-80 |
19,100 |
0 |
– 100 |
+ 300 |
|
Jharsuguda |
– |
18,200 |
NA |
NA |
NA |
|
|
Central India |
Raipur* |
79-80 |
19,500 |
+ 100 |
– 100 |
– 500 |
|
Raigarh |
79-80 |
18,800 |
– 200 |
– 300 |
– 450 |
|
|
South India |
Hyderabad |
79-80 |
19,700 |
0 |
– 100 |
– 600 |
|
Bellary |
75 |
18,000 |
0 |
– 500 |
– 500 |
Basic prices in INR/MT
*Advance/Next day payment
Source: SteelMint Research
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