Iron Pellet market in the state of Odisha has been drastically hit on account of which manufacturers have lowered prices further towards the end of second week of June.
One of the major suppliers has resumed its production and sales of Pellet today, at Rs 6,800/MT, which was on hold over the last one and a half months.
Another large manufacturer of Pellet has preferred to use the raw material for captive consumption as buyers are reluctant to make purchases at Rs 7,000/MT and the manufacturer is unwilling to offer Pellet at cheaper rates.
Prevailing Iron Pellet Prices (ex works) at Odisha in Rs/MT:
Barbil: 6,700-6800, down by 300
Keonjhar: 6,400-6,500, down by 400
Jharsuguda: 6,800-6,900, down by 400
Pellet producers based in Odisha told SteelMint that, “Sponge iron prices are not moving up and there is lack of demand for Pellet from the Sponge iron units.”
Many of the manufacturers have shut down their Sponge iron shops on high raw material cost.
They are waiting for correction in Iron ore prices, which is not happening and are having to bear losses.
Supply of Pellet has increased over a period of time. Manufacturers are in a hurry to sell and are pulling down prices as holding of stock will not be a wise decision.
With Brahmani River Pellet Limited (Stemcor Project) expected to start its Pellet operations soon in Odisha, prices would be under pressure in the weeks ahead”.
Bellary (Karnataka):
Pellet makers based in Bellary (Karnataka) have maintained prices for low grade material. Whereas, high grade Pellet has been range bound.
According to Pellet manufacturers, “Market has not been good with few Sponge iron units operating below 50% capacities. Prices of Sponge iron have not increased in the last few days and off take of finished steel has been poor. The above factors have impacted Pellet sales and resulted in low prices”.
Current Pellet Prices (Rs/MT):
Fe 62 grade: 7,100-7,225
One of the manufacturers is offering a discount of Rs 75/MT on purchase of 10,000 tons.
Fe 60 grade, Rs 6,400/MT (Unchanged)
Raipur (Chhattisgarh):
Pellet offers remain unchanged in the range of Rs 8,200-8,300/MT. Manufacturers indicated some correction early next week as they are not offering large quantity of material for sales as of now.
Tatanagar (Jamshedpur):
A marginal fall of Rs 100/MT to Rs 7,200/MT was seen in Pellet prices at Jamshedpur.
It is in line with downtrend in Odisha prices and similar reasons stated.
Leave a Reply