Pellet buying in eastern and central India has noticed a consistent fall in last few weeks resulting in only few suppliers in the merchant market.
On a weekly basis, pellet prices across India continue to remain unchanged except west India. Despite there was some improvement seen last week in prices of pellet sponge but this has not lend any support to pellet buying. Some eastern India pellet makers despite having inventories are reluctant to lower offers.
Pellet makers continue to hold their offers despite limited bookings in hand. As per railway data tracked by SteelMint, in Dec’15 (till 13 Dec’15) only 3 rakes of pellets have been supplied by Odisha based major pellet makers and all of the three rakes have been supplied by Ardent Steel. No pellet rake has been moved by other major pellet makers namely Jindal Steel & Power, Arya Iron & Steel and Brahmani River Pellets.
Similarly in central as well as in southern India pellet prices are stagnant. Market participants expect the prices to remain at current levels this week as demand from sponge makers is likely to remain stagnant.
Indian Pellet Prices as on 14 Dec’15
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,000 | 0 | 0 |
| Jharsuguda | 63 | 3,500-3,600 | 0 | -300 |
| Durgapur | 63 | 3,600-3,800 | 0 | -750 |
| Raipur | 63 | 4,000-4,300 | -50 | -350 |
| Bellary | 62 | 4,200-4,400 | 0 | -100 |
| Kandla** | 63 | 4,100 | -100 | -400 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
On the other hand pellet prices in western India have fallen by INR 100/MT W-o-W over declining imported lump offers. Jindal SAW pellet offers for Fe 63% are at INR 4,100/MT and INR 4,400/MT for Fe 65% (delivered Kandla).
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