West India Pellet Offers Move Up; Stable Elsewhere

Jindal SAW raises offers by INR 150/MT

With imported lump becoming costlier amid rise in global iron ore prices, domestic pellet offers in west India have also moved up. Jindal SAW pellet offers are currently assessed at INR 5,450/MT (delivered Kandla) which were earlier seen at INR 5,300/MT (delivered Kandla). Offers for imported South African lump are presently heard at USD 75/MT, CFR India.

East India pellet makers focus on export

Major eastern India based merchant pellet plants remain inclined towards export owing to rising global prices and thus have restrained themselves from domestic sales.

Week 34 began with stable pellet prices in majority of the markets except west India. After a gap of three days, domestic pellet market did not notice any major change in the market sentiments.

Presently in Durgapur, no major merchant miner is seen offering in domestic market. Shyam Sel and Super Smelters have kept their sales closed while Rashmi Metaliks is focussing on its export shipment over which it is not making offers in domestic market. Last offers were heard at INR 3,800/MT (basic).

Raipur pellet offers stable at INR 3,950-4,000/MT

Raipur based pellet manufacturers are seen quoting offers in the range of INR 3,950-4,000/MT (basic). A Raipur based market participant highlighted that though pellet makers are seen giving high offers, no bulk order has yet not concluded at current offers.

Pellet demand is stable and P-DRI (80 FeM) offers are heard at INR 11,200/MT (basic).

Indian Pellet Prices as on 16 Aug’16

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

Trade-wise:

1. Raipur based pellet manufacturer – Jayaswal Neco is offering pellets at INR 4,030 (after VAT exemption)
2. Rourkela based pellet maker – Shri Mahavir Ferro Alloys is not seen giving offers in domestic market. Its pellet export offers are at USD 79/MT, FoB India