Indian Pellet Prices Exhibit Mixed Behaviour

While some pellet manufacturers have reduced their offers by INR 100-300/MT W-o-W, looking at drift of sponge iron manufacturers towards lump, others continue to hold their offers.

Post price cut by Odisha iron ore miners, the price gap between lump and pellets has widened further. At one end, 5-18 mm (Fe 63%) lump offers are currently in the range of INR 2,900-3,200/MT (ex-mines), while on the other, Barbil pellet (Fe 63%) offers are in the range of INR 4,750/MT (loaded to wagons).

*till 14 Sept’15

In response to the widened price gap, pellet bookings have reduced and sponge makers are prefering lump. Due to changed preferences, pellet prices in few regions have noticed some reduction.

Pellet prices in Durgapur have declined by INR 300/MT W-o-W and are currently hovering in the range of INR 4,700-5,100/MT (basic).

Similarly, in Jharsuguda prices have fallen by INR 100/MT against last week to INR 4,700/MT (basic). At Barbil, pellet prices continue to remain unchanged at INR 4,750/MT, loaded to wagons.

In central India too, pellet prices have witnessed a fall of about INR 100/MT and are currently at INR 5,100-5,200/MT (basic). Demand continues to remain weak with limited bookings in hand.

However, pellet offers in southern India remain stable. In Bellary, offers for Fe 63% are at INR 4,800/MT (basic) and at around INR 4,750/MT (basic) for pellets of same grade in Hospet.

With imported lump becoming costlier (currently around USD 71-72/MT, CIF India), pellet offers in western India are also likely to move up. However, current offers remain unchanged from those of last week and are at INR 5,350/MT, delivered Kandla.

Indian Pellet Prices as on 14 Sept’15

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