Week 51 has noticed decline of INR 50-200/MT in domestic pellet prices in India.
Sharp correction in domestic pellet prices of Jharsuguda and Raipur were seen this week. Limited buying interest from pellet sponge manufacturers on the backdrop of curtailed production has resulted in decline in pellet offers.
“P-DRI prices in Raipur remain unchanged at INR 12,800-12,900/MT (ex-plant). Pellet offers in Raipur have come down further. Buyers are looking for pellet offers at INR 4,300/MT (basic). However Raipur pellet manufacturers are heard giving offers at INR 4,300-4,400/MT (basic). No major deals were heard to be concluded at buyers await further reduction”, shared a Raipur based pellet maker.
Trade-wise:
1. Rourkela based Mahavir Ferro Alloys has kept offers remain unchanged at INR 4,100/MT (ex-Rourkela). Limited deals were reported.
2.Rashi Steel & Power – Bilaspur based pellet maker sold 5,000 MT pellets at INR 4,475/MT (ex-Bilaspur) to Raigarh based sponge plants. Current offers are at INR 4,400/MT (ex-Bilaspur).
3. West Bengal based – Super Smelters sold 2,000 MT pellets at INR 4,600/MT (basic).
Indian Pellet prices as on 13 Dec’16
|
City |
Grade (Fe %) | Prices | W-o-W |
Remarks |
| Barbil | 63 | No offers | – | JSPL & Arya iron & steel keep themselves away from quoting offers in domestic market over better realizations in export. |
| Jharsuguda | 63 | 4,000 | -200 | Shyam Metaliks & Energy inJharsuguda sold 3,000 MT pellets at INR 4,000/MT (basic) to Raigarh based plant. Demand continues to remain dull. |
| Durgapur | 63 | 4,600-4,700 | 0 | Rashmi Metaliks is still not quoting offers for domestic market. Super Smelters & Shyam Sel continue to hold offers. |
| Jamshedpur | 63 | 4,000-4,100 | -50 | Adhunik Metaliks is heard offering pellets at INR 4,000-4,100/MT. |
| Raipur | 63 | 4,300-4,400 | -150 | Limited buying interest has pulled down offers by INR 150/MT W-o-W. |
| Bellary | 63 | 5,200-5,300 | -50 | Southern India pellet makers continue to hold offers amid limited buying interest from sponge manufacturers. |
| Kandla* | 63 | 6,400 | 0 | Amid dull buying interest from western India based steel makers, Jindal SAW continues to hold pellet offers. On the other hand importers have kept themselves away from booking vessels on the backdrop of high global prices. Global iron ore fines (Fe 62%) index is presently seen at USD 82.8/MT, CFR China. |
Basic prices in INR/MT
*delivered
Source: SteelMint Research
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