Pellet Prices in Central India Fall as DRI Prices Go Down

Pellet prices in central India have fallen by INR 200/MT W-o-W over falling prices of sponge iron.

Central India: 

1. Pellet prices in central India have dropped by INR 200/MT. Current prices for Fe 63% pellets are assessed at INR 5,200-5,250/MT (Ex- Works)
2. Pellet sponge (P-DRI) prices in Raipur fell by INR 1,100/MT in July. Current offers are at INR 13,250/MT (Ex- Works). Sponge prices in central India have fallen over falling demand in finished & semi finished market
3. Market sources informed that bulk quantity of around 50,000 MT pellets has been booked by a group of central India based sponge iron manufacturers. The material has been booked under the condition that if the booked quantity is lifted in a month’s time then the prices applicable will be INR 5,000/MT (ex-plant), otherwise it would be priced at INR 5,200/MT (ex-plant)

Eastern India: 

1. No firm offers from Barbil based manufacturers were noticed amid on-going transport strike in the state by mining truck association. Last offers from Arya Iron & Steel for Fe 63% pellets were at INR 4,100/MT (loaded to wagons), while Jindal Steel & Power were at INR 4,250/MT (loaded to wagons)
2. A market participant shared that in the meeting conducted by Pellet Manufacturers Associaton of India (PMAI) last week, it was decided to increase pellet prices by INR 100-200/MT
3. Pellet prices in Durgapur for Fe 63% are in the range of INR 4,800-5,000/MT (basic). Durgapur pellet offers have moved up after Odisha based transporters went on strike over fixing ceiling on mineral transportation charges. Buying continues to remain weak with limited bulk bookings
4. Jamshedpur based manufacturers are offering 63% Fe Pellets at INR 4,300-4,400/MT (Ex- Works)

Southern India:

1. Pellet prices in southern India are currently at similar levels as those of last week. Fe 63% pellets are in the range of INR 4,900-5,000/MT (basic). Market expects correction in pellet prices over reduction in prices of pellet sponge. P-DRI prices in Bellary have reduced by INR 200/MT W-o-W

Western India: 

1. Jindal Saw’s pellet offers for Fe 63% are at INR 5,100/MT, delivered Kandla. The company is currently shut down for maintanance purpose and is selling stock in hand. The pellet plant is expected to resume operations in 1st week of Aug’15
2. It was heard through sources that pellet offers of Essar Steel are around INR 4,900-5,000/MT, delivered Kandla

Indian Pellet Prices

Basic prices in INR/MT
*loaded to wagons
**delivered
Source: SteelMint

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