India: Domestic Pellet Offers Remain Under Pressure on Falling Export Prices

Domestic pellet trades have slowed down amid festive holidays

Limited pellet export deals concluded in last week and subdued buying interest from sponge manufacturers has turned sentiments in Indian domestic pellet market gloomy. Manufacturers are exploring overseas markets and looking for finalizing export deals so as to keep domestic prices supported.

Indian pellet export reference price assessment for regular grade pellets (containing 3% Alumina) is at around USD 135/MT, CFR China; lower by USD 2-3/MT against previous week.

Central India pellet trades remain on the lower side

According to market sources, Central India (Raipur) pellet offers have remained almost stable from the last week's assessment. Current reference pellet assessment for Raipur is around INR 7,800-8,000/MT (basic) against at INR 7,900-8,100/MT last week. However, buying interest is lower at current offers.

P-DRI prices in Raipur have also declined by INR 200/MT to INR 21,100/MT against last week assessment at INR 21,300/MT.

Durgapur Pellet prices range bound; few deals reported-:

Durgapur pellet price assessment is at INR 7,800/MT (delivered); stable against previous week.

P-DRI prices have comes down sharply by INR 500/MT to INR 22,100/MT against INR 21,600/MT last week.

No offers for the domestic market were heard from JSPL. However, another Barbil based pellet maker was heard to offer around INR 7,500/MT (loaded to wagons).

Southern India pellet prices stable -

Southern India (Bellary) based pellet makers have remained unchanged at INR 7,200-7,500/MT (basic) in line with last week assessment.

P-DRI prices also stable amid festivity to INR 20,800/MT against INR20,700/MT last week assessment.

Indian Pellet Reference prices as on 05th Nov'18

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