Indian Pellet Prices Continue to Move Up by INR 100-200/MT in Week 36

Major east India merchant pellet makers refrain from offering in domestic market over higher export realizations. With limited pellet sellers in domestic market, domestic offers have also moved up consecutively for this week.

East India pellet offers up on limited domestic availability – Eastern India based pellet makers have raised their offers further on ground of limited availability in domestic market. Pellet offers in Durgapur as well as in Jharsuguda have increased by INR 200/MT to INR 4,000/MT (basic). However no offers for domestic market were heard from Barbil and Jamshedpur.

Raipur pellet offers up to INR 4,200/MT – Pellet manufacturers in Central India have raised their offers by INR 100/MT in this week to INR 4,200/MT (basic). Market sources shared that iron ore dispatches have been affected to some extent owing to monsoons. Price rise in pellet sponge (up by INR 450/MT W-o—W) has also pushed up Raipur pellet prices.

Southern India pellet makers raise offers in line with increasing P-DRI prices – Pellet offers in southern India have moved up by INR 100/MT W-o-W and are hovering in the range of INR 4,350-4,425/MT for Fe 63% pellets. Market participants shared that P-DRI prices have moved up by INR 300/MT W-o-W following which pellet offers have also increased.

Indian Pellet Prices as on 30 Aug’16 

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

Trade-wise:

1. Bilaspur based pellet maker – Rashi Steel & Power pellet offers are at INR 4,100/MT (ex-Bilaspur).

2. A Raipur based pellet maker sold nearly 3,000 MT pellets at INR 4,150/MT (basic). Present offers are at INR 4,200/MT (basic).

3. A Jharsuguda based pellet maker sold nearly 5,000 MT pellets at INR 3,950/MT. Current offers are at INR 4,000/MT (basic).

4. MSPL offers for Fe 65% pellets remain unchanged at INR 4,900/MT (basic)