Pellet Prices in Eastern India Remain Stable; Sales on Hold

Despite decline in fines price by Odisha miners, pellet prices remain stable over limited trading activities. Few Odisha pellet manufacturers prefer to wait and watch to resume sales.

Eastern India:

1. Odisha based miners cut fines prices by INR 100-200/MT last week looking at dull demand.
2. Pellet sponge prices in eastern India have fallen by upto INR 250/MT in last 1 week
3. Jindal Steel & Power and Arya Iron & Steel have kept their sales closed as of now. Last week the offers were heard to be in the range of INR 4,270/MT (loaded to wagons)
4. Durgapur pellet (Fe 63%) prices are in the range of INR 4,600-4,900/MT (basic)

“Though Odisha miners have cut fines prices, there are hardly any chances of significant reduction in pellet prices as prices are already quite low as far as production cost is concerned. Buying is very weak and there are limited bookings”, said a Pellet manufacturer based in eastern India. 

Central India: 

1. Pellet prices in Raipur have witnessed a fall of INR 100/MT, W-o-W. Current offers for Fe 63% are at INR 5,000/MT (basic)
2. A Raipur based pellet maker shared that prices of semi finished products continue to witness downtrend. P-DRI prices in central India have fallen by INR 150-300/MT in last week, which has pulled down pellet prices

Southern India:

1. Pellet prices at Bellary remain at last week levels. Offers for Fe 62% are at INR 4,900/MT

Western India:

1. Jindal Saw is likely to resume its pellet sales shortly after maintenance shut down. Sources say offers for Fe 63% pellets may be around INR 5,300-5,400/MT, delivered Kandla
2. Offers for imported South African lump have moved up over rise in global iron ore prices and are around USD 71-72/MT, CIF India. Thus, it apperas that with imported lump becoming costlier, domestic pellet manufactureres have also raised their offers which were last seen at INR 5,100/MT delivered Kandla

Trade-wise:

1. As per the data recorded by the railway movement a total of 19 pellet rakes were loaded last week. Arya Iron & Steel loaded 8 rakes, whereas Jindal Steel & power loaded 10 rakes
2. Out of this, Chhattisgarh based units bought 3 rakes from Arya Iron & Steel

Indian Pellet Prices

Basic prices in INR/MT
Source: SteelMint