Jindal Steel and Power Ltd (JSPL), one of India’s largest pellet and steelmaker has bought around 25,000 MT pellets at around INR 6000/MT from merchant market owing to non-availability of railway rakes, SteelMint learned from market sources.
JSPL’s Raigarh steel plant (Chhattisgarh) which sources pellets from their own pellet plant in Barbil (Odisha) is facing critical issues with railway logistics. The company is forced to buy pellets from nearby Raipur based manufacturers. JSPL operates 3 MnT steel Plant in Raigarh and 9 MnT pellet plant in Barbil, Odisha.
Pellet prices move up in Central India – Central India (Raipur) based pellet makers have increased offers by INR150/MT to INR 6,200/MT (ex-plant, GST@5% extra) yesterday (7th June 2018) against the last assessment INR 6,000-6,100/MT (ex-plant, GST @5% extra).
P-DRI prices have also increased to INR 20,200/MT (ex-Raipur) against INR 19,700/MT a week ago.
Eastern India (Durgapur) Pellet makers raise offers further -: In the further price revision process eastern India (Ex-Durgapur) pellet makers increased offers yesterday (7th June 2018) by INR 250/MT to INR 7, 100-7,200/MT (delivered) against last assessment INR 6,800-6,900/MT a day ago. This is the third time in a week they have increased prices. In the last two weeks, they have raised the price by around INR 1,300-1.400/MT.
Market sources also confirmed limited pellet quantity deals to have concluded at INR 7,200/MT.
Which all factors have supported pellet price hike?
Logistics issue- Iron ore rake availability issue is prevailing in the eastern part of India from the last few weeks. This might lead to a further hike in pellet offers in near term.
Upcoming Monsoon-: In the upcoming few days monsoon is expected to arrive which will give pellets a preference over iron ore to be used by sponge manufacturers.
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