India: Domestic Pellet Offers Soften Amid Weak Demand

Durgapur pellet offers fall; limited trades reported -: In Durgapur (eastern India) SteelMint's reference pellet price assessment stands at INR 6,200-6,300/MT (delivered) down sharply by INR 400-500/MT against INR 6,600-6,700/MT in the beginning of last week. Buyers mentioned limited trades at current offers.

P-DRI prices have decreased W-o-W at Durgapur to INR 16,900-17,100/MT against last week assessment of INR 17,400-17,500/MT.

Few central India pellet makers lowered offers -: Few Raipur based pellet makers lowered offers to INR 6,500/MT (ex-Raipur) however others continue to hold same offers at INR 6,800/MT. SteelMint's assessment for Raipur stands at INR 6,500-6,700/MT against last week assessment at INR 6,800/MT. Preference to iron ore lump has softened demand for pellets. P-DRI price declined sharply by INR 300-500/MT to INR 16,700-16,800/MT (basic) compared to INR 17,200/MT (ex-Raipur) a week ago.

As per sources, a Bilaspur (C.G) based pellet maker sold 10,000-15,000 MT pellets to Raipur based plants about 4-5 days back at INR 6,000/MT, FoR Raipur.

Southern India pellets declined amid falling sponge -: Southern India (Bellary) based pellet makers have decreased pellet offers to INR 6,700-6,900/MT against last week assessment at INR 7,000-7,200/MT. P-DRI prices also decreased by INR 500-700/MT to INR 17,200-17,400/MT this week against INR 17,900/MT last week.

Indian pellet trade updates-:

-- Raigarh based pellet makers' offer assessed at INR 6,000/MT (ex-plant) and no deal reported at similar levels.

-- West India based pellet maker - Jindal SAW has kept offers unchanged this week at INR 8,900/MT delivered Kandla.

-- A southern India based pellet maker booked around 10,000-15,000 MT pellets at INR 6,700/MT (ex-Bellary).

SteelMint pellet reference prices as on 18th Jun'19

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