Indian Pellet Makers Look For Domestic Buyers as Global Demand Weakens

Domestic pellet price continue to remain stable across all major regions in India except southern India where prices have fallen by around INR 100/MT W-o-W.

Pellet offers remain unmoved this week except southern India. Market sources reported dull demand in global market as most buyers wait for further buying. Few pellet makers who were looking up for exports have now turned to domestic market as exports have turned less viable post decline in global prices. As per market sources, an Odisha based pellet maker has recently resumed domestic pellet sales.

”Buying interest is very week. We are offering pellets at INR 3,300/MT (basic) and discounts accordingly on purchases above 5,000 MT. We have received some bookings at current offers. Currently pellet offers in Durgapur are assessed in the range of INR 3,300-3,500/MT (basic)”, quoted a West Bengal based pellet maker.

Raipur based pellet makers reported that offers are presently in the range of INR 4,000-4,100/MT (basic). Market sources shared that buyers are seeking offers INR 100/MT less than current offers.

Bellary based pellet makers shared that pellet prices have come down this week (by INR 100/MT W-o-W) over weaker sentiments prevailing in sponge and finished steel market. Present offers for Fe 63% pellets are heard in the range of INR 4,100-4,175/MT (basic).

Trade-wise: 

1. A Raipur based pellet maker sold around 15,000 MT pellets to a Raipur based sponge manufacturer at INR 4,050/MT (basic)
2. Rourkela based Shri Mahavir Ferro Alloys is offering pellets at INR 3,100/MT (ex-Rourkela)
3. As per sources, landed prices of Odisha pellets to Raipur are currently at INR 4,020-4,050/MT

Indian Pellet Prices as on 31 May’16

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