India: Domestic Pellet Offers Range Bound Amid Limited Trades

Indian pellet offers have remained unmoved this week against the previous week's offer amid low trades and limited inquiries.

Raipur pellet offers under pressure amid competitive offers from Raigarh:

Raipur (Central India) based pellet makers have kept offers unaltered at INR 7,200/MT (Ex-Raipur) against the last week's. Major pellet buyers are not interested to buy at these offers and are expecting a drop in offers soon.

According to market sources report to SteelMint, pellet offers from Raigarh based pellet makers is around INR 6,200-6,300/MT (Ex-Raigarh) for which landed to Raipur will come around INR 7,000-7,1000/MT, offers from traders are learned to remain on lower side. This is expected to put Raipur pellet offers under pressure.

P-DRI prices also seem to be stable at INR 19,800/MT in line with last week's assessment.

Limited pellet deals reported by Durgapur pellet makers-:

SteelMint's current pellet assessment for Durgapur is around INR 6,300-6,400/MT this week in line with the last week's assessment. One of the Durgapur based pellet makers concluded a deal 5,000 MT pellet at around INR 6,300/MT.

Southern India pellet offers stable - Southern India (Bellary) pellet offers for Fe 63% grade stable to INR 7,300-7,400/MT (basic) this week in line with last week's assessment. With a pellet maker undergoing maintenance, prices are likely to remain supported in the near short term. P-DRI price increased sharply by INR 500/MT to INR 20,200/MT against last week assessment INR 19,700/MT.

Indian pellet trade updates-:

1. West India based pellet maker - Jindal SAW offers has kept offers firm at INR 8,850/MT, delivered Kandla.

2. Jajpur based Brahmani River Pellets is offering pellets at INR 7,200/MT to Kalinganagar based units.

Indian Pellet Reference prices as on 05th Mar '19

**delivered
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research