Manufacturers of Iron ore Pellet located in Bellary (Karnataka) have lowered prices for low grade material with Fe% 59 or 60, looking at weak buying interest for the same, from sponge iron units.
For high grade Pellets with Fe% 62 and 63, they have maintained offers at similar levels, quoted in the week before.
Hence, Pellet plants in South are presently running at 70% capacities only.
Sponge iron manufacturers are also not preferring to purchase iron ore lumps as the cost factor is causing continuous losses.
Only 30 percent of sponge iron plants are continuing operations in Karnataka, at 50 percent capacities.
Pellet prices (Rs/MT) in Bellary (Karnataka):
Janki Corp Ltd (JCL) 6,700 Fe% 59
Sold about 40,000 tons in March
Selling most of the quantity to buyers located in Hyderabad and Bellary.
BMM Ispat Ltd 6,600 Fe% 59 and 7,100 Fe% 62
Sold about 70,000 tons in March
Selling most of the quantity to Koppal based buyers such as Kamachi Sponge and also to consumers in Goa.
MSPL Ltd 7,400 Fe% 63
Sold about 65,000 tons in March
Xindia Steels Ltd 7,350 Fe% 62
The company is giving a discount of Rs 150/MT to buyers willing to place bookings for 10,000 tons of its material at one time.
Sold about 82,000 tons in March
Selling most of the quantity to Hyderabad and Goa based buyers.
In the week ahead, prices of Pellet might witness a slight difference of Rs 100/MT only, depending on changes in demand.
KIOCL (Mangalore):
Demand for Pellet is sort of ok and has not improved in large, after NMDC has cut prices of lumps in April.
Pellet is being offered at Rs 7,600/MT currently, unchanged from previous quote.
For KIOCL's material, demand from Goa is good.
Raipur (Chhattisgarh):
Producers of Pellet have been unable to meet with better buying volumes, noticed stability in demand and have decided to continue offering their material at Rs 9,000/MT.
Tatanagar (Jamshedpur) – Adhunik Metaliks Ltd:
A hike of Rs 200/MT is witnessed in prices that have touched 7,900/MT levels due to improved sales.
In the last week, the company was not offering its material.
All are ex works prices
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