Pellet Prices Increase, Buying Remains Low

Few pellet makers in eastern India have raised pellet offers by upto INR 250/MT M-o-M. However buying continues to remain weak.

P-DRI prices have increased sharply by INR 400-800/MT W-o-W. But pellet demand continues to remain weak as sponge manufacturers prefer lump over pellet as the former is cost effective.

Barbil pellet prices remain stable at INR 3,000/MT (loaded to wagons). Jindal Steel & Power sold 1 pellet rake each to Super Smelter and Gagan Ferrotech last week.

Pellet prices in Durgapur exhibited an increase after a span of around 3 months. Few pellet makers in eastern India have raised prices by INR 200/MT W-o-W.

In Jharsuguda and Durgapur pellet makers have incremented prices by INR 200/MT W-o-W. “P-DRI prices have gained INR 1,300/MT in last 1 month, but there is no aggressive pellet buying in the market. We have raised pellet prices by INR 200/MT. Pellet offers in Durgapur are in the range of INR 3,800-4,000/MT “- quoted a Durgapur based pellet manufacturer.

Indian Pellet Prices as on 28 Dec’15

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

In central India pellet prices are in the range of INR 4,200-4,300/MT (basic). While landed offers of Odisha pellets to Central India are at INR 3,930/MT.

Some pellet makers in southern India have raised pellet offers by INR 100/MT. Current prices in Bellary for Fe 63% pellets are in the range of INR 4,300-4,400/MT (basic).

Declining prices of lump in Karnataka e-auctions are gaining preference. In the Karnataka iron ore e-auctions held so far in this month base prices for lump have remained as follows. Base prices of lump (Fe 62.5%) offered by NMDC Donimalai and NMDC Kumarswamy mines were INR 1,575/MT and INR 1,400/MT (basic) respectively. While the base price of lump (Fe 62.5%) offered by Sesa Sterlite stood at INR 925/MT (basic).