Week 48 has noticed sharp plunge in domestic pellet offers across all major markets in India except western and southern India where prices continue to remain stable.
Pellet offers in central and eastern regions of India continues to remain under pressure and have declined further by INR 100-400/MT W-o-W. Cash crunch after currency demonetization in India has adversely impacted trade activities in iron & steel industry.
Market participants reported thin pellet buying interest from sponge manufacturers as majority of them have them have either shut down plants or have curtailed production. Domestic P-DRI prices have come down upto INR 1,000/MT W-o-W.
Indian Pellet Prices as on 22 Nov’16
|
City |
Grade (Fe %) |
Prices | W-o-W |
Remarks |
| Barbil | 63 | No offers | – | JSPL and Arya Iron & Steel are not seen giving offers for domestic market. As per railway movement data, JSPL is presently seen supplying pellets to Bhushan Steel. As per trade sources, the pellet maker will be supplying nearly 26 rakes to the steel maker. |
| Jharsuguda | 63 | 4,000 | -400 | Amid limited buying interest from domestic sponge manufacturers, Shyam Metaliks & Energy has reduced offers by INR 400/MT |
| Durgapur | 63 | 4,600 | -200 | Rashmi Metaliks is still not quoting offers in domestic market. Super Smelters has reduced offers by INR 200/MT W-o-W. |
| Jamshedpur | 63 | 4,100 | -150 | Adhunik Metaliks has reduced pellet offers by INR 150/MT owing to dull demand. |
| Raipur | 63 | 4,600 | -100 | Many sponge manufacturers have gone for production cut owing to unviability. Sharp decline in P-DRI prices (down by INR 1,000/MT W-o-W) has compelled pellet makers to reduce offers. However no deals have concluded so far as pellet buyers are eyeing for further price reduction of INR 100-200/MT. |
| Bellary | 63 | 5,300 | 0 | Poor finished steel demand continues to keep sponge prices under pressure. Domestic pellet buying continues to remain weak. |
| Kandla* | 63 | 6,400 | 0 | Jindal SAW continues to hold pellet offers. |
Basic prices in INR/MT
*delivered
Source: SteelMint Research
Trade-wise:
1. Southern India based MSPL is offering Fe 65% pellets at INR 5,750/MT (basic)
2. West Bengal based pellet manufacturer – Super Smelters sold 2,000 MT pellets at INR 4,600/MT (basic) to a Durgapur based sponge plant
3. Jharsuguda based pellet maker – Shyam Metaliks & Energy sold 2,000 MT pellets at INR 4,000/MT (basic)
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