Eastern India Pellet Offers Edge Up on Improved Trades
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Domestic pellet prices in India have observed a mixed response this week. Few pellet makers in eastern India have raised their offers. On the contrary, central and southern India based pellet makers have reduced the offers this week.
Durgapur based pellet makers raise offers over increase in semi-finished prices
In Durgapur (eastern India) reference pellet price assessment has increased and stands at INR 8,200/MT (delivered) this week against last week's assessment INR 8,000/MT (delivered) in beginning of last week. Rashmi Metaliks has resumed offering in domestic market this week. A pellet maker confirmed deal of 5,000 MT pellets to have concluded at INR 8,200/MT delivered.
P-DRI prices in Durgapur have increased sharply by INR 700-900/MT to INR 21,300-21,500/MT against last week's assessment at INR 20,800/MT (delivered).
Barbil pellet offers remain unchanged at INR 8,000/MT (loaded to wagons) and JSPL is not heard quoting offers in domestic market. Offers from Brahmani River Pellets (BRPL) are heard at around INR 8,800/MT (ex-Jajpur).
Central India based pellet maker reduce offers further
According to market sources, Central India (Raipur) pellet price assessment for this week is at INR 8,500/MT against assessment of INR 8,700/MT towards last weekend. The pellet makers in Central India have dropped the prices and expect further price fall for the week ahead on dull buying interest and limited trades at these levels.
As per reports, an Odisha (Jharsuguda) based pellet maker has sold around 40,000 MT Pellets to Raipur and Raigarh based plants in past 10 days. Last deal reported was at INR 8,400/MT landed to Raipur.
Southern India pellet makers depicted nominal fall in prices
Southern India (Bellary) based pellet makers have marginally decreased prices to INR 7,950/MT against INR 8,000-8,200/MT last week. SteelMint learned from the sources that last buying interest was at INR 50-150/MT less than the offers. As per sources, a pellet maker booked around 30,000 MT pellet at INR 7,800-7,900/MT.
Another South India based pellet maker was heard to have recently concluded pellet deal of 15,000 MT at INR 7,900/MT.
Indian Pellet Reference prices as on 9th Oct'18
| Regions | Grade (Fe %) | Base Prices INR/MT |
| Durgapur | 63 | 8,200 |
| Barbil* | 63 | 8,000 |
| Jamshedpur | 63 | 7,800-8,000 |
| Raipur | 63 | 8,500-8,600 |
| Bellary | 63 | 7,900-8,000 |
| Kandla | 63 | No offers heard as Jindal SAW is not offering on low stocks and export bookings. |
*loaded to wagons
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
