Amid sharp increase in prices of pellet sponge as well as increase in prices of fines in Karnataka e-auctions, southern India based pellet makers have raised their offers.
P-DRI prices in Bellary have moved up by INR 800/MT W-o-W and is seen at INR 12,550/MT (ex-works) for 78 FeM.
Also, fines prices in Karnataka e-auctions have witnessed an increase. For instance, fines (Fe 64%) offered by Chowgule & Company was sold at bid price of INR 1,530/MT (basic) on e-auction conducted on 12 Feb’16. In the recently conducted auction on 11 Mar’16, the miner has sold fines (Fe 64.2%) at bid price of INR 1,705/MT (basic).
Current pellet offers in southern India
1. MSPL has revised offers and is offering Fe 63% pellets at INR 4,800-4,900/MT (basic) against its previous offer of INR 4,300/MT (basic)
2. Minera Steel & Power is offering pellets at INR 4,500/MT (basic) for Fe 63% pellets. Although market participants shared that buying is not seen at these levels
Eastern India pellet market continues to remain under pressure
East India pellet offers have witnessed reduction amid limited buying. Durgapur pellet offers are now seen at INR 3,500-3,900/MT (basic). Jharsuguda pellet prices have fallen by INR 100/MT W-o-W to INR 3,800/MT (basic).
Indian Pellet Prices as on 15 Mar’16
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 3,100 | 0 | -50 |
| Jharsuguda | 63 | 3,800 | -100 | -100 |
| Durgapur | 63 | 3,500-3,900 | -100 | -150 |
| Raipur | 63 | 4,300 | +50 | +100 |
| Bellary | 62 | 4,500-4,900 | +500 | +500 |
| Kandla** | 63 | 5,350 | 0 | +850 |
Basic prices in INR/MT
* loaded to wagons
**delivered
Source: SteelMint Research
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