Week 17 noticed sharp correction of INR 600/MT in Jindal SAW pellet offers. Pellet offers for Fe 63% grade pellets which were earlier seen at INR 6,300/MT (delivered Kandla) have now come down to INR 5,700/MT (delivered Kandla).
Steep fall in Chinese spot iron ore prices has been seen in last one week and prices have fallen by USD 8/MT W-o-W. Gujarat based steel makers has raised inquiries for imported South African lump. Presently offers for imported South African (Assmang) lump is at USD 77/MT, CFR India.
Domestic pellet prices in eastern and central India continues to remain under pressure over limited buying amid decline in P-DRI prices and falling pellet export prices. In Raipur pellet offers have come down by INR 150/MT W-o-W.
Indian Pellet Prices as on 18 Apr’17
|
City |
Grade (Fe %) |
Basic Prices in INR/MT |
W-o-W |
Remarks |
| Barbil* | 63 | 4,700-4,750 | = | JSPL and Arya Iron & Steel had reduced offers towards mid of last week. Offers continue to remain unchanged as of now. Declining pellet export offers is pressurizing domestic offers as well. |
| Keonjhar* | 63 | 4,500 | -250 | Ardent Steel pellet offers have come down this week. Present offers are at INR 4,500/MT (loaded to wagons). |
| Jharsuguda | 63 | No Offers | = | Shyam Metaliks & Energy sold nearly 4000 MT pellets to Raigarh based plant at INR 5,300/MT. Presently over increased captive consumption, pellet maker is not giving offers in merchant market. |
| Durgapur | 63 | 5,000-5,300 | -50 | Rashmi Metaliks pellet offers remain unchanged at INR 5,000/MT. The pellet maker is giving quantity discount of INR 100/MT on bulk quantity purchases. Super Smelters sold nearly 15,000 MT pellets at INR 5,300/MT |
| Raipur | 63 | 5,000-5,100 | -150 | Falling P-DRI prices has resulted in drop in pellet offers.P-DRI prices in Raipur have weakened by INR 600/MT W-o-W. |
| Bellary | 63 | 6,350-6,600 | = | Southern India pellet prices remain stable this week. However buying interest has weakened against last week. |
| Kandla** | 63 | 5,700 | -600 | With imported lump offers to India becoming cost-effective, Jindal SAW has reduced pellet offers. |
*loaded to wagons
**delivered
Source: SteelMint Research
Trade-wise:
1. Bilaspur based Rashi Steel is offering pellets at INR 5,200/MT (ex-Bilaspur). It sold 4,000 MT pellets to Raigarh based plant at INR 5,200/MT (ex-Bilaspur).
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