India: Domestic Pellet Trades Remain Weak Despite Reduction in Offers

Lowered pellet buying interest from Chinese mills and decline in P-DRI prices have turned sentiments bearish in domestic pellet market. Despite the reduction in pellet offers by eastern and central India based pellet makers, trade activities have remained dull.

SteelMint has also learned from the sources that Durgapur pellet offers have further declined today to INR 6,700/MT against the assessment made earlier this week at INR 7,000/MT. Buyers are eyeing for further drop in offers looking at the decline in P-DRI prices.

According to the market participants report to SteelMint, Raipur (Central India) based pellet manufacturers have reduced offers yesterday to INR 7,600/MT as against last offers INR 8,000/MT (ex-Raipur, GST extra). However, amid decline in P-DRI prices, buying interest at quoted offers has remained on the lower side which has limited trades. P-DRI price has decreased sharply by INR 1,100/MT to INR 20,200/MT against INR 21,300/MT a week ago. SteelMint in conversation with major pellet buyers learned that buyers are expecting the decline in offers considering low trades at present offers.