Iron Pellet manufacturers based in the eastern region of India have increased Pellet prices by INR 200/MT to INR 7,750/MT. 

One of the manufacturers last sold at INR 7,500/MT. Another company sold at INR 7,750/MT. Prices are ex works Barbil (Odisha).

“Uncertainty in Iron ore supply in domestic market has pushed up Pellet offers. Essel Mining Limited (EML) mining operations at its Jhilling mines will be on hold w.e.f 11 Jan, 2013, on expiry of its mining license. The miner sells about 3.5-3.6 MnT pa Iron ore in domestic market.

Demand in Pellets has gone up and we are able to receive bookings at high prices. The material is being offered at INR 7,750/MT looking at widening gap in Iron ore demand (high) and supply (low)”, Barbil based Pellet manufacturers told SteelMint.

Exports Market

One of the Barbil based exporters is willing to close an export deal in the current month, only if realizations stand at a minimum of 7,000 per tonne as margins from domestic sales is on the higher side.

Another exporter in Keonjhar might finalize a deal in the current week. Export offers are hovering in the range of 155-160/MT FoB east coast of India. Prices remain stable at USD 172/MT CFR China.

Central India

Pellet prices in Raipur (Chhattisgarh) is being quoted in the range of INR 8,300/MT (ex works). According to sources, demand is at INR 8,100/MT levels but plants are unwilling to close sales below INR 8,200/MT.