Pellet Prices Move up in Line with Improvement in Sponge Iron Prices

With sharp increase in sponge iron prices, pellet prices have also witnessed an uptrend. Pellet sponge prices have moved up around INR 550/MT W-o-W across India. 

Pellet prices in eastern India up by upto INR 300/MT W-o-W

1. Jindal Steel & Power is offering Fe 63% pellets at INR 4,400/MT (loaded to wagons). The pellet maker resumed its sales by mid of last week and raised offers by INR 150/MT
2. On similar lines, pellet prices in Jharsuguda, Keonjhar and Jamshedpur have also gone up by INR 100-250/MT W-o-W
3. Durgapur pellet prices have moved up by INR 300/MT W-o-W. Current offers for Fe 63% pellets are around INR 4,800-5,300/MT (basic). Hike in prices of semi-finished goods has led to increase in pellet prices as well. However, participants are skeptical about the stability in increased prices

Pellet prices in central India up by INR 100-200/MT W-o-W

Pellet prices in Raipur have strengthened by INR 100-200/MT over improvement in bookings from sponge manufacturers and limited pellet supply from Odisha. Current offers for Fe 63% are at INR 5,200-5,300/MT (basic). Godawari Power & Ispat is offering Fe 63% pellets at INR 5,300/MT (basic).

As per the data recorded by railway movement, unlike past few weeks, no pellet rake was supplied from Odisha to Chhattisgarh based units during the last week. Jayaswal Neco concluded a pellet deal last week at INR 5,150/MT (after considering VAT exemption). Current offers for Fe 63% pellets are in the range of INR 5,300-5,400/MT (after considering VAT exemption).

Bellary pellet manufacturers hold prices

Unlike central and eastern regions of the country, which have witnessed an improvement in pellet demand, southern India is still witnessing dull market. Current offers for Fe 63% pellets are are in the range of INR 4,650-4,750/MT. However, a southern India based market participant shared that marginal improvement that was seen today might push pellet prices up.

Western India Pellet Offers at INR 5,300-5,400/MT, delivered Kandla

Jindal Saw is offering Fe 63% pellets at INR 5,300-5,400/MT, delivered Kandla. Demand for domestic pellet suffered setback over falling global iron ore prices, but with spot iron ore prices touching USD 56/MT, CFR China domestic pellet demand by Gujarat based steel mills has also picked up.

Trade-wise:

Essar Steel concluded a pellet export deal with China from Paradip Port. The deal was heard to be concluded at USD 65/MT, FoB India.

Indian Pellet Prices

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