Indian Pellet demand has been flat despite rising DRI prices in the domestic market. Current offers are still hovering at INR 7,200-8,500/MT ex-works for 64/63% Fe Pellets.
Market participants mentioned that viewing the Iron ore scarcity and drastic fall in Pellet production in last few weeks, demand has not been up to the mark. Buyers still prefer to wait & watch.
“Though prices have moved up, there is very little parity for producing Sponge iron from Pellets. We prefer Iron ore over Pellets as realizations are better,” said a Sponge iron manufacturer based in Eastern India.
On hike in royalty rates, he mentioned that it will certainly impact Iron ore and Pellet prices in short-term.
Sponge manufacturers in Eastern India mentioned that they have offers from Odisha based Pellet plants at INR 7,300-7,500/MT (as per loaded to wagons) for 64/63% Fe Pellets.
Chhattisgarh based Sponge manufacturers mentioned to have offers at around INR 8,500/MT ex-Raipur.
Gujarat based manufacturers mentioned that they have offers from Jindal Saw at around INR 7,800-8,000/MT delivered to plant (CST of 2% extra).
South based Pellet manufacturers are offering 62% Fe at INR 7,800-7,900/MT.
Some cargoes of Brazilian and Australian Pellets will be hitting Indian market by this month end.
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