Indian Pellet Prices Fall Further-Week 48 Updates

Eastern India pellet prices fall by upto INR 450/MT W-o-W

1. Durgapur pellet prices have noticed a sharp fall. Decline in pellet sponge prices have led to reduction pellet prices. Pellet prices have declined by INR 450/MT W-o-W and are in the range of INR 3,800-4,100/MT
2. Odisha based merchant pellet maker, Arya Iron & Steel has recently reduced pellet offers. Current offers in Barbil are at INR 3,000/MT (loaded to wagons)
3. Keonjhar pellet offers are at INR 2,900/MT (basic). While those in Jharsuguda are at INR 3,700/MT (basic)

“Pellet makers in eastern India are struggling amid current market scenario. There does not appears any scope of improvement unless prices in semi finish and finished steel depict improvement. The remaining operational plants might also turn to captive if similar situation persists”, shared an eastern India market participant.

Some central India pellet makers cut offers

Some Raipur based pellet makers continue to hold prices while others have reduced their offers. Current offers are hovering in the range of INR 4,300-4,500/MT (basic).

Southern and western India pellet offers remain stable

Pellet prices in Bellary continue to remain at similar levels as those of last week. Prices of Fe 63% pellets are in the range of INR 4,300-4,400/MT (basic).

Jindal SAW has reduced pellet offers last week. Prices of Fe 63% pellets were seen at INR 4,500/MT (delivered Kandla) and prices were INR 4,900/MT (delivered Kandla) for Fe 65% pellets. Imported South African lump continue to remain a competitor for domestic pellet prices in western India. Offers for imported South African Kumba lump are at USD 54-55/MT, CFR Kandla for ready stock.

Indian Pellet Prices as on 24 Nov’15

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