Iron ore Pellet manufacturers located in Barbil (Odisha) are offering their material at prices higher by Rs 100-200/MT.
Market sources told SteelMint as to why have Pellet prices stepped up in Odisha.
Arya Iron & Steel Co. Pvt Ltd (Barbil):
A number of factors mentioned below have resulted in Pellet price rise by Rs 250/MT and it is being offered at Rs 7,850/MT (ex work prices, loaded to wagon) at the moment. It is heard that a couple of rakes has been already sold at new prices.
In the month of May, Arya is expected to take a shut down for around 20 days on annual maintenance reasons. Its been about 18 months that the plant had not taken one due to continuing good demand in market.
Stock of Pellet is not in excess presently.
Looking at approaching monsoons, as showers have started in Barbil, market is well aware that the quality and availability of the raw material is to get affected.
By the end of April, it is anticipated that prices might step up by Rs 100/MT more to Rs 7,950/MT levels.
Bulk buying in Pellets is not taking place as there is a wide gap in prices of lumps (Rungta -Rs 7,250/MT royalty incl and loaded to wagons) and Pellets.
Jindal Steel & Power Ltd (JSPL) (Barbil):
The company is selling Pellets at Rs 7,700/MT (ex work prices, loaded to wagon) and has lifted prices due to low supply, its not that there has been a big shift in market demand.
Though, buyers have come down in terms of quantity in the present day, demand is decent.
Sources said that there is further scope of price hike by JSPL, which would gradually shift to Rs 7,750/MT and Rs 7,800/MT and finally touch 7,850/MT.
Ardent Steel Ltd (ASL) (Keonjhar):
It is offering Pellets at Rs 7,400/MT (ex work prices) in the present day, which is an increase by Rs 150/MT from previous quotes.
The installed capacity for producing Pellet is 0.6 MnT per annum and is running at almost 100% capacity.
There is a possibility of increase in offers further, which depends on the availability of fines as well as finished products market scenario.
Shyam Steel had placed bookings for 10-12 rakes, Monnet Ispat and Prakash industries had made the same for 4-5 rakes and the deal has been finalized, officials said.
MSP Steel & Power Ltd (Raigarh):
Pellet prices have gone up slightly by Rs 100/MT and are being quoted at Rs 7,650/MT (ex works Keonjhar) and at Rs 7,800/MT (ex works Raigarh) as of now.
There are fewer chances of any price rise in the days to come as market has not met with any major movement in buying activities in last few days.
Brahmani River Pellets Limited (BRPL)-a Stemcor project:
According to officials, the commercial operations of its 4.5 MnT Pellet plant at Jajpur (Odisha) would start in the month of June.
But, market sources expect that it might extend up to July due to the slurry pipeline issues.
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