Indian Pellet Market Highlights: Week 26

Pellet prices in India’s domestic market continue to remain stable this week with slight corrections in few regions and a little higher price cut of INR 150/MT in southern India.

Most Southern India based pellet makers have reduced offers in last couple of weeks over falling demand & dull trades. As per sources a vessel carrying 160,000 MT South African Assmang lump is likely to arrive at Krishnapatnam port by month end or early Jul, which is stated to be a main reason for falling demand for pellets as few of Hyderabad based sponge manufactures is heard to have booked 15,000 MT quantity each from the vessel. This is another factor which has resulted in drop in Bellary pellet prices.

Presently Bellary pellet offers are heard at INR 5,700-5,750/MT for Fe 63% grade pellets and INR 6,100-6,200/MT for Fe 65% grade pellets.

However Minera Steel has today raised pellet offers by INR 100/MT for Jul’17 bookings amid improved inquiries in past few days.

Jindal SAW cuts pellet offers – Rajasthan based pellet makers has reduced offers by INR 50/MT W-o-W to INR 5,150/MT (delivered Kandla) for Fe 63% grade pellets. Conversely, offers for imported South African lump are heard to be around USD 70/MT, CFR West coast of India.

Indian pellet export offers stable; inquiries increase – East India based pellet exporters shared that they are receiving inquiries from Chinese steel mills at  USD 86/MT,  CFR China but they are expecting level of USD 87/MT, CFR China which is equivalent to USD 79-80/MT, FoB India. Spot pellet premium for Fe 65% grade pellets is assessed at USD 27.75/DMT, CFR China.

Indian Pellet Prices as on 20 Jun’17

Source: SteelMint Research
**delivered
*loaded to wagons