Low demand from Sponge iron producers and improved supply of Iron ore have forced Pellet manufacturers to cut offers by INR 300-400/MT unofficially. At present, Sponge iron buying is weak and has impacted Pellet sales. Though, Iron ore mining has started, delivery is yet to smoothen and may thereafter pressurize Pellet market.
“There are no official offers in the market, even if we cut prices officially, it will be difficult to find buyers”, said a Pellet manufacturer based in Odisha.
Last deal of Fe 63% grade from Eastern region (Odisha) was heard to be settled at around INR 6,200/MT (lower by INR 400 from previous trade). Moreover, Pellet prices have corrected by almost INR 500/MT. Whereas, Iron ore prices have declined by about INR 500-700/MT in last 1-month.
Indian Pellet Prices as on 15 Jan’15
|
City |
Grade | Price |
|
(Fe %) |
||
| Jharsuguda | 63 | 6,800 |
| Tatanagar | 63 | 6,500 |
| Jajpur | 63 | 6,200 |
| Raipur | 63 | 7,400-7,500 |
| Bilaspur | 63 | 7,100 |
| Durgapur | 63 | 6,700 |
| Mangalore | 63 | 7,750 |
| Bellary | 63 | 7,400 |
| Hospet | 61/60 | 7,100 |
Basic prices in INR/MT
Source: SteelMint Research
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