Indian Pellet Buying Intact, Export Option Now Open

Pellet prices across major regions in country have remained unchanged amid stable demand.

Barbil pellet prices remain unchanged and are in the range of INR 3,000-3,100/MT (loaded to wagons). Pellet prices in Jharsuguda have witnessed a decline of INR 100/MT W-o-W and are seen at INR 3,900/MT (basic). As per market participants, demand for pellets remained stable compare to last week.

Raipur pellet offers are in the range of INR 4,200-4,300/MT (basic). Market sources shared that a Raipur based pellet maker has recently concluded a deal at INR 4,150/MT (basic) to MH based sponge manufacturer.

Southern India pellet (Fe 62%) offers are seen in the range of INR 4,050-4,200/MT (basic). However, a Bellary based pellet maker shared that preference of lump against pellet by sponge iron manufacturers has kept pellet demand low.

Trade-wise:

1. Jayaswal Neco pellet offers are at INR 4,400/MT (basic & after VAT exemption)

2. Pellet offers from Jharsuguda based pellet maker is at INR 3,900/MT (basic) and is offering discount of INR 50/MT on purchases above 5,000 MT

3. Last week, a Raipur based pellet maker has sold pellets to Chandrapur based plant at INR 4,100/MT (basic). Freight from Raipur to Chandrapur is around INR 800-900/MT

Indian Pellet Prices as on 09 Mar’16

Basic prices in INR/MT
* loaded to wagons
Source: SteelMint Research

Pellet export option open- Post record hike in global iron ore prices (D-o-D gain of USD 11/MT on 07 Mar’16), some east India based pellet makers are looking for export prospects. Currently, pellet prices are around USD 76/MT, CFR China. Pellet premium in this week is seen at USD 16/MT, CFR China.