Amid limited trade, pellet prices continue to remain at last week’s levels.
Eastern India: Pellet prices in eastern India continue to remain mostly stable this week. Current offers for Fe 63% are assessed at INR 4,200/MT by Arya Iron and Steel, and INR 4,250/MT by Jindal Steel & Power Ltd (loaded to wagons).
A Durgapur based pellet maker shared, “There was marginal improvement in pellet-sponge prices last week. However pellet demand continues to remain low owing to which prices remain at last week’s levels.”
Pellet trade remained thin last week. As per the railway movement programme, limited pellet trade was witnessed from Odisha. Jindal Steel & Power supplied 1 rake each to Gallant Ispat and Maithan Ispat. Ardent Steel supplied a rake to Satyam Iron & Steel.
Also, recent price cut in lump (by INR 200-350/MT) by Odisha miners has created price disparity. Thus, it can be inferred that over falling sales and increasing inventories, pellet makers might cut production.
Central India- Raipur based pellet makers have kept prices unchanged as of now and prices for Fe 63% are at INR 5,800/MT (basic). Over weak demand and price cut by NMDC (by INR 300/MT in fines and INR 100/MT in lump & ROM) pellet prices should reduce by INR 200-300/MT this week to cater demand.
Considerable supply of pellets from Odisha is also another factor which has put Raipur pellet prices under pressure.
Western India: Pellet prices for Fe 63% pellets are at INR 5,500/MT (delivered Kandla).
Indian Pellet Prices
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 4,200-4,250 | 0 | -100 |
| Jamshedpur | 63 | 4,700-5,000 | 0 | 0 |
| Raipur | 64 | 5,600-5,800 | 0 | -200 |
| Durgapur | 63 | 4,700-5,000 | 0 | -150 |
| Bellary | 62 | 5,200 | 0 | 0 |
| Kandla** | 63 | 5,500 | 0 | -100 |
Basic prices in INR/MT
*as per loaded into wagons
**delivered
Source: SteelMint
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