KIOCL is looking to sell Fe 63% iron pellets in domestic market. Further, weak sponge iron prices have led to decline in pellet prices.
KIOCL, with annual production capacity of 3.5 MnT iron pellet has put out a tender to sell 100,000 MT BF grade pellets in domestic market. It has invited reputed buyers for procurement of iron pellets. The material contains Fe 63% and size will range between 9 to 16 mm.
Contract period will be two months. Also, last date of submission of quotations will be 24 June’15 at 14:00 hrs and techno commercial bids will open on the same day at 15: 00 hrs.
Indian Pellet Market Scenario
Continuous falling demand and weak sponge iron prices have led to further decline in pellet prices.
- East India is the one affected the most. Limited buying interest has been seen in this region. A continuous downturn has been seen in Fe 63% pellet prices in Barbil which is currently at INR 4,500/MT (loaded into wagons) which was at INR 5,000/MT levels in the beginning of May’15.
- Scenario in central India is comparatively better as offers for Fe 63% are at levels of INR 5,900-6,000/MT, Ex-Raipur.
- For south India, pellet prices have fallen by INR 450/MT in last one month. Current offers for Fe 62% pellets are at INR 5,000/MT (basic).
- In west India, pellet prices are maintained at the same levels of INR 5,600-5,700/MT delivered Kandla.
Indian Pellet Prices
| City | Grade (Fe %) | Prices | W-o-W | M-O-M |
| Barbil* | 63 | 4,500 | -150 | -600 |
| Ex-Jamshedpur | 63 | 4,850 | -150 | -450 |
| Ex-Raipur | 63 | 5,950 | 0 | -50 |
| Ex-Jharsuguda | 63 | 5,200 | -200 | -300 |
| Ex-Durgapur | 63 | 5,250 | -117 | -400 |
| Ex-Bellary | 62 | 5,500 | -150 | -750 |
| Kandla** | 63 | 5,600-5,700 | 0 | NA |
Basic prices in INR/MT
*as per loaded into wagons;**delivered; NA:Not Available
Source: SteelMint Reseach
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