SteelMint learned from market sources that pellet prices in eastern India have come under pressure amid successive price cuts made by Odisha based major merchant miners in prices of lump.
Key merchant miners in Odisha are looking at scaling up their iron ore production in order to utilize their remaining Environmental Clearance (EC) approved for the financial year 2019 (Apr 2018 – Mar 2019). Serajuddin mine has cut its iron ore lump prices by INR 500/MT w.e.f 31st Dec’18. As per sources, the miner has cut prices of 5-18mm (Fe 63%) from INR 4,300/MT to INR 3,800/MT (ex-mines, including Royalty, DMF & NMET). Miner has cut prices for regular buyers.
According to market sources report to SteelMint, Barbil pellet offers in the domestic market have come down to INR 5,200/MT (loaded to wagons) which were earlier assessed at INR 5,500/MT (loaded to wagons). Durgapur pellet prices have come down to INR 5,700-5,900/MT which was at INR 6,000/MT towards the beginning of the week.
Trade updates:
1. Jharsuguda based pellet maker was heard to have concluded deal of 2,000 MT pellets at INR 6,300-6,400/MT (basic).
2. Few pellet deals in Durgapur were reported at INR 5,700-5,800/MT (basic).
3. No firm pellet offers were heard from Raipur based pellet makers as they are in ‘wait & watch’ mode after yesterday’s price cut made by NMDC. Baila lump prices have come down by INR 350/MT and baila fines by INR 300/MT in Jan’19.
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