Indian Pellet Market observes better Demand

Indian Pellet market has observed better demand owing to shortfall of Iron ore.

Limited availability of Iron ore lumps has left Sponge iron manufacturers with no other option but to procure Pellets at current offers.

“At present, demand is decent in the domestic market. We are receiving adequate amount of bookings from consumers at prevailing prices. We don’t see any room for price correction”, said a Raipur based Pellet producer.

An official from Pellet manufacturing company in Odisha stated that Pellet prices have retained at previous levels. Hopefully, prices will gain some momentum after the Supreme Court’s judgment on CEC’s report on illegal mining in the state of Odisha.

Sponge iron manufacturers offers remain unchanged that support Pellet prices across India. Any price hike will not be foreseen since Sponge manufacturers stay away from stocking Pellets. A couple of Pellet making companies in Eastern region is under pressure to procure raw material.

Steel manufacturers based in Gujarat have mentioned that the current offers from Jindal Saw are at INR 8,000/MT(excluding CST). Imported offers for South African lumps  are in the range of INR 6,700-6,800/MT both delivered to plant.

Trade Alerts

• Essar to ship 20,000 MT Pellets from Paradip port to a Chennai based Sponge unit
• SIMEC Resources to unload 80,000 MT Australian origin Pellets at Paradip port this week
• A Raipur based Sponge manufacturer has confirmed that Pellet is trading at INR 8,400-8,500/MT
• Pellet plants in Odisha & West Bengal are running below capacity level owing to unavailability of Iron fines
• Iron ore fines (Fe 63%) offers are in the range of INR 2,600-2,700/MT (approx) ex-mines

Indian Iron Pellet Prices

Basic prices in INR/MT
*Prices are as per loaded to wagons
Source: SteelMint Research

Indian Pellet Sponge (P-DRI) Prices as on 08 Aug, 2014

Basic prices in INR/MT
*Advance/next day payment
Source: SteelMint Research