Pellet prices showed mixed response in Indian market, after NMDC cut Iron ore prices by INR 300-500/MT (i.e 11-13%) for March.
Pellet prices in Chhattisgarh experienced pressure as most of the sponge manufacturers prefer buying NMDC Iron ore over Pellets. Last deal of Fe 63% Pellets were concluded at INR 6,400-6,600/MT on ex- works basis and participants are expecting a correction of INR 200-300/MT this week.
On the contrary, Pellet prices in Odisha moved up by INR 200-300/MT on limited offers with Fe 63% Pellets being offered at INR 5,700-5,800/MT (loaded to wagons basis). With decent bookings, Odisha based miners have kept their Iron ore prices unchanged.
West Bengal based manufacturers also kept their offers high owing to low deliveries from Odisha. Fe 63% Pellets were assessed at INR 6,300/MT on ex-works basis.
Karnataka based manufacturers cut prices last week, Fe 61% being offered at INR 6,650/MT and Fe 63/62 at INR 6,900/MT on ex- works basis.
Indian Pellet Prices
|
Particular |
Grade |
Price |
| Barbil | 63 | 5,500-5,700* |
| Raipur | 63 | 6,400-6,600 |
| West Bengal | 63 | 6,300 |
| Karnataka | 63/62 | 6,900 |
| 61 | 6,650 |
Basic prices in INR/MT
* as per loaded into Wagons
Source: SteelMint Research
Budget Impact: Union budget does not bring any cheer for Indian Pellet industry. Manufacturers, who were seeking removal of export duty (currently 5%) on Pellets, remain untouched by the government.
Indian Pellet exports have fallen significantly this financial year (FY15) owing to low prices in global market and higher export duty. India exported around 0.63 MnT in FY 15 (till Feb’15) against 1.5 MnT in FY14.
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