The second half of July has made things worst for Iron Pellet manufacturers across the country, in terms of domestic sales.
After maintaining prices from the beginning of this month, Pellet makers located in Bellary (Karnataka) have pulled down offers as they are struggling to liquidate the stock.
Monsoons has impacted the trading volumes and Sponge iron units are lifting the material on requirement basis only.
The average monthly production has come down by 30-40% in July, as compared to the average of Jan-June in 2013 and plants are running at about 60% capacity, down by 15% of last 6 months average.
Current Offers (Rs/MT):
Bellary Fe 62: 6,750-7,050 (- 200)
Fe 60: 6,000 (- 200)
Discount: Rs 100-150/MT is being offered by a plant, on purchases of 5,000 tons.
Raipur Fe 63: 7,500 (same)
Tatanagar Fe 63: 6,300-6400 (-500)
Basic prices
At Odisha, though offers have been retained, sales of Pellet is on hold as prices have touched quite low levels.
It has been heard that due to unavailability of fines in big quantities, one of the plant has been unable to continue operations in full swing.
Also, to get rid of stock, another manufacturer has sold the entire month's production, about 20-22 rakes at the lowest price of Rs 6,100/MT and closed sales recently.
In line with Odisha, offers came down at Tatanagar (Jamshedpur). It is selling at Rs 6,300/MT in Durgapur and at Rs 6,400/MT in Jharkhand.
Owing to low supply of Pellet in Raipur, prices have been maintained at previous levels. Demand from local buyers is decent as sellers at Odisha are not offering the material presently.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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