India: Domestic Pellet Trades Remain Limited

Post sharp hike in pellet offers, trades have turned dull with very less quantity trades being confirmed.

Durgapur pellet offers increase further-: In Durgapur (eastern India) reference pellet price assessment stands at INR 7,000-7,200/MT (delivered) up INR 200-300/MT against last week at INR 6,900/MT.

As per the sources, Durgapur based pellet maker concluded around 6,000 MT pellet at INR 7,100/MT (Ex-plant).

Most of the major pellet makers from Barbil are not offering this week also. They are mostly looking for pellet exports. SteelMint's assessment for Barbil pellets is around INR 6,100-6,200/MT (Loaded to wagon). Also, Odisha based major merchant miners have raised fines price by INR 200/MT today.

P-DRI prices have decreased this week at Durgapur to INR 18,200-18,400/MT against last week assessment of INR 18,600/MT.

Central India pellet offers up on limited supplies -: Current prices for Raipur hovering at a 3-month high. Raipur offers increased to INR 7,200/MT (Ex-plant) against the end of the last week assessment at INR 7000/MT. No deal heard for the raised pellet offers in Raipur.

Last work was done at INR 7,000MT for very small quantities. Buying interest in pellets is still very weak.

P-DRI price has decreased by INR 200-400/MT W-o-W from the last assessment. On weekly basis, P-DRI prices increased significantly to INR18,500-18,700/MT (basic) compared to INR 18,900/MT a week ago.

Southern India pellets maker offers increased marginally-: Southern India (Bellary) based pellet makers have increased pellet offers marginally to 7,100-7,300/MT against last week assessment at INR 7,000-7,300/MT. P-DRI price assessment increased by INR 200/MT to INR18,800/MT this week against INR18,600/MT last week.

Jindal SAW pellet offers up following global hike - West India (Rajasthan) based pellet maker - Jindal SAW has increased pellet offers by INR 500/MT (USD 3/MT). Current offers for Fe 63% grade pellets have moved down to INR 9,100/MT (delivered Kandla) against the previous assessment of INR 8,600/MT at last week. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).

Spot iron ore fines index continues to increase -: Spot iron ore prices increased amid shortage of global supply Fe 62% fines to USD 108/MT, CFR China on 27th May'19 against USD 100/MT, CFR, China a week before. In a month spot, iron ore prices increased sharply by USD 15/MT, CFR China.

Indian pellet trade updates-:

-- Southern India based Janki Corp is offering Fe 63% grade pellets at INR 7,100/MT in Bellary.

SteelMint pellet reference prices as on 28th May'19

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