India: Domestic Pellet Offers Continue Downtrend Amid Fewer Trades
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Competitive offers of iron ore lump in eastern India have kept domestic pellet prices under pressure.
Eastern India pellet offers remain under pressure - Durgapur pellet prices have witnessed decline further by INR 100/MT to INR 5,500-5,600/MT this week against last week's assessment of INR 5,600-5,700/MT. On similar lines, offers from major pellet makers of Barbil, Jamshedpur have reduced offers this week. Competitive lump offers have put pellet prices under pressure.
P-DRI prices have slightly edged up this week to INR 19,000-19,200/MT as against last week assessment at INR 18,900-19,100/MT.
Southern India Pellet offers continue to decline - Southern India (Bellary) pellet prices have decreased offers further this to INR 6,900-7,000/MT against INR 7,000-7,100/MT(basic) last week's assessment. P-DRI price also declined to INR 18,600-18,800/MT against last week assessment INR 18,900-19,100/MT.
Central India pellet makers continue to hold offers - Raipur based pellet makers haven't changed offers against the end of the last week assessment. SteelMint's current assessment for Raipur pellet stands at around INR 6,000/MT (ex-Raipur). Not many deals were reported on current prevailing price in the domestic market. Trade participants are expecting prices to come down in the near term.
P-DRI prices in Raipur are also remained volatile and is currently assessed at INR 18,600-18,700/MT against last week assessment at INR 18,400-18,600/MT.
Indian pellet trade updates-:
1. Monnet Ispat (Raigarh) based pellet maker has kept offers at around INR 5,900-6,000/MT (Ex-Plant).
2. Jajpur based Brahmani River Pellets is offering pellets at INR 6,400/MT (ex-plant).
3. Durgapur based pellet maker concluded deals at around INR 5,500-5,600/MT.
4. Pellet export vessel named 'Ionic' of Brahmani River Pellets carrying 33,000 MT sailed to Malaysia. The deal was concluded at around USD 108/MT, CFR.
Indian Pellet Reference prices as on 15th Jan'19
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 4,800-4,900 |
| Jharsuguda | 63 | 5,850 |
| Durgapur | 63 | 5,500-5,600 |
| Jamshedpur | 63 | 5100-5,200 |
| Raipur | 63 | 6,000 |
| Bellary | 63 | 6,900-7,000 |
| Kandla** | 63 | 8,300 |
**delivered
*loaded to wagons
