Indian Pellet Prices under Pressure Amid Declining Prices of Pellet Sponge

Indian pellet prices are under pressure and noticed fall in form of discount. P-DRI prices have declined by upto INR 650/MT in last one week.

Barbil pellet offers down by INR 300/MT

Pellet makers in Barbil have reduced pellet prices by INR 300/MT W-o-W to INR 3,000/MT (loaded to wagons) for Fe 63% pellets. Pellet offers across other eastern regions and central parts of the country remain unchanged.

However pellet makers shared that situation is getting worse day by day. There are not much pellet buyers as fall in prices of semi-finished and finished steel products has lessened the demand for pellets.

Central India pellet makers hold offers

Raipur based pellet makers continue to hold offers in the range of INR 4,150-4,200/MT (basic). However buying from pellet sponge makers continues to remain low. A market source shared that some central India based sponge iron makers bought pellets from Odisha landed cost of which is at INR 4,100-4,200/MT.

A Raipur based pellet maker concluded a deal of around 10,000-12,000 MT pellets at INR 4,150-4,200/MT (basic)

Few southern India based pellet makers reduce offers

Talking about southern India, some pellet makers have reduced pellet offers.

“Market is dull. P-DRI prices in Bellary have dropped by around INR 600/MT in last 1 week and also sponge iron makers are seen preferring lump over pellet. Owing to this few pellet makers in southern India have reduced offers to INR 4,200-4,250/MT (basic). However, others are maintaining their offers at INR 4,300/MT (basic)”, quoted a south India based pellet maker.

Indian Pellet Prices as on 25 Jan’16

Basic prices in INR/MT
* loaded to wagons
Source: SteelMint Research