Indian Pellet Buying Remains Weak, Prices Stable

Pellet buying in domestic market continued to remain weak amid limited buying interest. Major eastern India pellet makers have supplied merely five rakes to sponge makers last week (i.e. 16 Jun’16-22 Jun’16). Domestic prices remain more or less unchanged with minor reductions in some regions.

Domestic iron pellet scenario-Week 22

1. Few eastern India pellet makers reduce offers – Barbil based pellet maker-Arya Iron & Steel has reduced offers by INR 100/MT to INR 2,900/MT (loaded to wagons) for Fe 63% pellets. Barbil pellet offers are now seen hovering in the range of INR 2,900-3,100/MT (loaded to wagons). Durgapur pellet offers have also reduced and are presently seen at levels of INR 3,300-3,500/MT, slightly down against previous week’s assessment.

1. Raipur pellet offers remain stable – Pellet offers in Raipur continue to remain stable against last week. Offers are heard around INR 4,000-4,100/MT (basic) for Fe 63%. A Raipur based pellet maker shared that “offers continue to remain unchanged although buying is thin. Buyers are looking for INR 100-200/MT levels below present offers”.

1. Pellet offers in southern India notice minor reduction – Bellary (Karnataka) pellet offers for Fe 63% which were seen wavering in the range of INR 4,250-4,300/MT (basic) previous week have witnessed reduction and are presently assesed in the range of INR 4,150-4,250/MT (basic). Market sources said that decline in prices of sponge (down by upto INR 100/MT W-o-W) led to fall in pellet prices.

Indian Pellet Prices as on 24 May’16

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