Indian Pellet manufacturers have raised their offers marginally by INR 100-200/MT owing to deteriorating supply of Iron ore in merchant market.
The Supreme Court on 16 May, 2014 had ordered suspension of mines running under 2nd deemed renewal in Odisha, which has dented Iron ore supply by 19-20 MnT from merchant mines on annual basis.
Domestic Prices
Current offers for Fe 64/63% Pellets (gang content of 6-7%) are in the range of around INR 7,500-8,500/MT ex-works across India.
- Barbil (Odisha) based manufacturers have offered 63.5% Pellets at INR 7,500/MT (as per loaded to wagons)
- Jharsugda (Odisha) based manufacturers have claimed to conclude some deals at INR 8,200/MT ex-works
- Raipur (Chhattisgarh) based manufacturers are offering 63.5% at around INR 8,500/MT ex-works
- Durgapur (West Bengal) based Sponge manufacturers are receiving offers at around INR 8,000-8,300/MT for 63% Fe Pellets
- Gujarat based manufacturers have received offers from Jindal Saw at around INR 7,900-8,000/MT delivered to plant, excluding CST
- Bellary (Karnataka) based manufacturers are offering 62% Pellet at around INR 7,800-7,900/MT ex-works
Imported Iron Ore
With rising scarcity of Iron ore in the domestic market, steel makers have consistently importing Iron ore. However, few parcels are imported by the merchant importers.
Last week, Iron Lumps of grade 64% from Kumba mines (South Africa) was unloaded at Kandla port, which was imported by Swiss Singapore and heard to have sold at USD 104-106/MT CFR India on High Sea Sales (HSS) to Gujarat based Sponge manufacturers.
Another shipment of Iron Pellets from Grange Resources (Australia) is to unload at Paradip port by SIMEC Resources.
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