India: East India Pellet Makers Optimistic Over Rising P-DRI Prices
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After witnessing decline in pellet offers, dull trades since last eight weeks, eastern India based pellet makers have got something to cheer. Recent increase in P-DRI prices and increase in pellet export offers over surge in spot pellet premium has supported domestic pellet prices in eastern India.
Towards the end of last week (i.e. week 21) domestic pellet prices weakened further on limited trades. However, with recent spike in P-DRI prices majority of east India based pellet makers have raised offers slightly.
P-DRI prices in Durgapur increased by INR 700/MT yesterday and remained stable today and in central India prices moved up by INR 400-500/MT.
Spot pellet premium jumped USD 4/DMT and was assesed at USD 20.8/DMT, CFR China. Iron ore fines (Fe 62%) index is presently hovering in the range of USD 62-63/MT, CFR China. Thus, SteelMint's assesment for Indian pellet export are at USD 76-78/MT, FoB India.
Indian Pellet Prices as on 23 May'17
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 3,550 |
| Keonjhar* | 63 | 3,900 |
| Jamshedpur | 63 | 3,900 |
| Jharsuguda | 63 | 4,300-4,400 |
| Durgapur | 63 | 4,200-4,400 |
| Raipur | 63 | 4,600-4,700 |
| Bellary | 63 | 5,900 |
| Kandla** | 63 | 5,400 |
*loaded to wagons
**delivered
Source: SteelMint Research
Trade-wise:
1. Jharkhand based Usha Martin pellet offers are at INR 3,900/MT.
2. West Bengal based pellet makers have increased offers this week against last week's closing. Rashmi Metaliks pellet offers are at INR 4,200-4,300/MT. Offers of other major pellet makers in Durgapur are as follows: Shyam Sel : INR 4,400/MT and Super Smelters - INR 4,350-4,400/MT.
3. Southern India (Bellary) based pellet manufacturer - MSPL has kept offers unchanged at INR 5,900/MT for Fe 63% grade pellets.
