Domestic pellet prices in central and eastern India continued its downward movement this week. Pellet prices have witnessed a decrease up to INR50-150/MT W-o-W on declining P-DRI prices. However, western India prices have increased sharply by INR 250/MT.
Jindal SAW increased offer sharply Amid Surge in Global iron ore prices
Western India pellet maker Jindal SAW has increased pellets offers by INR 250/MT to INR 6,900/MT (delivered Kandla) this week against last assessment of INR 6,650/MT.
Spot iron ore fines (Fe 62%) prices increased considerably from USD 66.95/MT CFR China at the beginning of last week, to USD 68.25/MT, CFR China at the beginning of this week.
Durgapur and Central India Pellet Prices Under Pressure
In Durgapur (eastern India) Reference pellet price assessment stands at INR 5,900/MT (delivered) this week. Pellet prices in Durgapur have decreased up to INR 150/MT W-o-W. P-DRI price assessment has decreased sharply by INR 900/MT W-o-W to INR 20,100/MT (delivered) against last week’s assessment which was INR 21,000/MT.
Jharsuguda based pellet maker – Shyam Metaliks & Energy is not offering from the quite few weeks in the merchant market owing to increased captive consumption.
Central India (Ex-Raipur) pellet prices assessment for this week is at INR 5800-55,900/MT against INR5950/MT. Prices have decreased by INR 100/MT W-o-W.P-DRI prices assessed at INR.19,600./MT(basic) compared to INR 19,750 /MT a week ago.
Indian pellet market update: Week 20, 2018
1. Southern India based pellet makers have stable offers amid moderate demand in the region. P-DRI price. Assessment stands at INR 18,800/MT mostly stable.
2. One of the Bellary based Pellet makers concluded 8000 MT deal at INR 6700/MT.
3. Odisha’s merchant iron ore miner and steel making group – KJS Ahluwalia has commenced pellet production in Barbil Odisha. Presently, their pellet offers are heard at INR 4,800/MT (ex-plant), around INR 500-600/MT would be charged extra for loaded to wagons basis.
Indian Pellet Reference prices as on 15th May’18
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5400-5,500 |
| Durgapur | 63 | 5,800 – 5,900 |
| Jamshedpur | 63 | 5,300-5,400 |
| Raipur | 63 | 5,800-5,900 |
| Bellary | 63 | 6,700-6,800 |
| Kandla** | 63 | 6,900 |
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
*loaded to wagons
**delivered
Source: SteelMint Research
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