Iron pellets prices remain stable though buying interest has been weak for past few days, on falling sponge prices and rising power prices.
“Pellets are being offered at Rs 9700/t (Basic) from big manufacturers based in Barbil (Odisha), but demand has been low from manufacturers on falling sponge prices in Chattisgarh, Bengal and Odisha.” said a market trader.
Also high power cost in Chattisgarh ,Odisha and Bengal have increased production cost of ingot manufacturers, he further added.
Pellet prices in iron ore starved state Karnataka also remained constant for last few weeks, which is hovering around Rs 8,200-8,500/t (Basic) for 62-63% Fe.
Sponge manufacturers are not very keen to use pellets, as it is expensive and also realization is poor, said a sponge plant owner in Central India.
If market stays sluggish, pellet manufacturers will be left with no other option but to sell at discounted prices, he further added.
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