Iron Pellet manufacturers based at Odisha – eastern region of India, have pulled down offers to an all time low level w.e.f the 22nd July.
The material is being offered at Rs 6,100/MT (loaded to wagons at Barbil, Odisha) by one of the large Pellet manufacturer.
“Finished steel prices are coming down and it is being difficult for Pellet prices to remain constant.
We don't see any improvement by the end of this month and things might be better in August.
There are no new projects coming up and lack of construction activities still exist.
Private sector has taken a stand back for any investment due to delays in government projects.
There is lack of cash flow, demand is quite poor and margins have squeezed”, stated the manufacturers.
Jindal Steel & Power Limited (JSPL) had from the beginning of July, maintained prices at Rs 6,500/MT (loaded to wagons at Barbil, Odisha).
In order to ease the present market situation, the producer has decided to hold sales and retain offers at similar levels.
JSPL is moving the material to its plant – Jindal Shadeed Iron & Steel at Oman (South west Asia) for captive consumption, where it has a 1 MnT DRI making furnace.
And, is also using the raw material for its plants based in the state of Odisha.
Similarly, another Pellet maker located at Keonjhar has taken a decision not to take any booking orders up to the 10th of August.
They already have enough booking orders at Rs 6,200/MT (basic) till mid-August and have therefore decided to stop offering pellet at prices lower to this.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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