India: Domestic Pellet Offers Move Up On Rising Sponge Prices
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Domestic pellet offers across all major Indian markets have increased by INR 100-300/MT W-o-W except in western India where prices have come down by INR 200/MT.
Amid hike in sponge prices, pellet offers in central, eastern and southern India have increased up to INR 300/MT W-o-W. P-DRI prices have moved up by about INR 1,000/MT in last one week. Following this, pellet manufacturers have also raised their offers.
Another factor that has supported Indian pellet prices is rise in pellet exports. Higher Chinese demand has supported Indian pellet export prices which are hovering around USD 109-110/MT, FoB India.
However Bhilawara (Rajasthan) based pellet maker - Jindal SAW has reduced pellet offers by INR 200/MT. Presently prices Fe 63% pellets are at INR 6,200/MT (delivered Kandla). The pellet maker has reduced prices amid fall in global iron ore prices which has in turn resulted in fall in offers for imported lump. Offers for imported lump from South Africa are heard around USD 80/MT, CFR India.
Trade-wise:
1. A Raipur based pellet maker was heard to have sold around 5,000 MT in local market at INR 5,300/MT (basic).
2. Durg based pellet plant - Raipur Power & Steel is offering pellets at INR 5,400/MT (ex-Durg)
3. Offers for Fe 65% grade pellets in Bellary are around INR 6,700/MT (basic)
4. Durgapur based pellet manufacturer concluded a deal at INR 5,300/MT
Indian Pellet Reference Prices as on 31 Oct'17
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Durgapur | 63 | 5,300 |
| Raipur | 63 | 5,300-5,400 |
| Bellary | 63 | 6,200-6,300 |
| Barbil* | 63 | 4,800-5,000 |
| Kandla** | 63 | 6,200 |
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
*Loaded to Wagon
**Delivered
