After a week's time, trades in Iron Pellet has met with slight improvement.
Looking at the same, prices have been unaltered for now and might witness a marginal upward movement in the days ahead.
One of the manufacturers has lowered the discounts offered by Rs 100/MT to Rs 50/MT on 10,000 tons purchases, which was 5,000 tons earlier.
Pellet (Fe% 62) prices are standing in the range of Rs 7,100-Rs 7,400/MT (ex works Karnataka).
Offers for low grade material (Fe% 60) drops further by Rs 200/MT to Rs 6,600/MT (ex works) due to slow off take.
Pellet manufacturers based in Karnataka told SteelMint, “Demand in Pellet is decent at the moment and should be better in the current week as sponge iron units are preferring to buy Pellet instead of lumps from e-auctions, especially due to low tumbler index, coupled with less supply and high prices.
Demand for imports of scrap has also come down after Indian government, on May 08, imposed a 2.5% customs duty on the same.
Now, furnaces are utilizing more of sponge iron, ultimately resulting in better buying of Pellet”.
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