Limited buying interest in pellets has restricted any price change. Market participants shared that pellet buying is weak and buyers are not showing much interest to previous price hike in Barbil & central India.
Weekly highlights of domestic pellet market
- Barbil pellet offers remain unchanged at INR 3,100-3,200/MT (loaded to wagons). Pellet makers in Barbil had raised offers in last two weeks. But as per sources, less buying interest is seen at increased offers
- As per railway movement data maintained with SteelMint, only 11 pellet rakes have been supplied by east India pellet plants in Apr’16 (till 11 Apr’16). JSPL supplied 5 rakes, Brahmani River pellets supplied 4 pellet rakes and Arya Iron & Steel loaded 2 rakes of pellet
- Jamshedpur based pellet plant-Adhunik Metaliks has resumed merchant pellet sales. It had shut pellet sales 5-6 months back over reduced viability. Current offers are at INR 3,400/MT (ex-plant)
- Raipur pellet offers remain stable on weekly basis and are assessed at INR 4,400-4,500/MT. However buying interest is seen at INR 100-200 below the present offers
- Few southern India based pellet makers have raised offers post increase in iron ore base price in yesterday’s Karnataka e-auction. MSPL is offering Fe 63% pellets at INR 4,500-4,600/MT (basic)
As per sources, floor price for Fe 63% Doni lump offered by NMDC Donimalai mines has increased to INR 1,995/MT from INR 1,748/MT. Base price for fines (Fe 60.2%) which was INR 1,425/MT in previous e-auction has gone up to INR 1,633/MT. (Prices mentioned are basic)
Indian Pellet Prices as on 12 Apr’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,100-3,200 | 0 | +50 |
| Rourkela | 63 | 3,200 | 0 | – |
| Jamshedpur | 63 | 3,400 | 0 | – |
| Jharsuguda | 63 | 3,700 | 0 | -100 |
| Durgapur | 63 | 3,500-3,800 | 0 | -100 |
| Raipur | 63 | 4,400-4,500 | 0 | +150 |
| Bellary | 63 | 4,150-4,600 | +50 | -300 |
Basic prices in INR/MT
* loaded to wagons
Source: SteelMint Research
Trade-wise:
- Raipur based pellet maker-Jayaswal Neco is offering pellets at INR 4,600/MT (basic, after VAT exemption)
- Shri Mahavir Ferro Alloys (Rourkela) pellet offers are at INR 3,200/MT (loaded to trucks)
- South India based pellet maker-BMM Ispat is offering pellets (Fe 63%+) at INR 4,150-4,200/MT (basic)
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