India: Domestic Pellet Prices Continues to Surge Amid Limited Offers
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Indian pellet offers in the domestic market have increased relentlessly from INR 300-900/MT W-o-W. Most of the pellet makers have booked decent quantities in exports amid lucrative offers in the global market. As per market participants report to SteelMint they are still not offering in the domestic market which has led to the shortage of pellets. Indian pellet manufacturers are having best of their time.
Central India pellet offers to Increase further amid a shortage in merchant market -
Central India (Ex-Raipur) pellet offers have increased further significantly. Assessment for this week is at INR 8,500- 8,700/MT against last week's assessment of INR 8,200/MT (basic).
As per the sources report to SteelMint, Central India based major pellet makers are still not offering, led to the material shortage in the merchant market. P-DRI prices have also been increased by INR 1,800/MT W-o-W and trading at the all-time high at INR 24,600/MT (basic).
Limited offers push Durgapur pellet offers; - In Durgapur (Eastern India) reference pellet price assessment stands at INR 8,000/MT (delivered) this week, hovering by around INR 500/MT against last week's assessment at INR 7,500/MT. Durgapur based Rashmi Metaliks is not offering pellets in the domestic market.
Barbil based pellet maker Jindal Steel & Power and Arya Iron & Steel are not offering in the domestic market this week also. Pellet offers from BRPL, Jajpur is heard at around INR 8,100/MT (ex-plant).
Southern India pellet offers increased further following high Sponge prices -:
Southern India (Bellary) based pellet makers have increased prices to INR 7,500-7,700/MT in this week against last week assessment which was INR 6,900/MT. P-DRI prices have also increased sharply by INR 2,400/MT to at INR 22,500/MT (basic) compared to INR 20,100 /MT a week ago.
Indian Pellet Reference prices as on 28th Aug'18
| Regions | Grade (Fe %) | Basic Prices in INR/MT |
| Jajpur | 63 | 8,100 |
| Durgapur | 63 | 8,000 |
| Raipur | 63 | 8,500-8,700 |
| Bellary | 63 | 7,500-7,700 |
| Kandla** | 63 | 8,200 |
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
**delivered
Source: SteelMint Research
