India: Jindal SAW Raise Pellet Offers Amid Global Iron Ore Price Hike

West India (Rajasthan) based pellet maker - Jindal SAW has increased pellet prices by INR 150/MT. Current offers for Fe 63% grade pellets have moved up to INR 6,900/MT (delivered Kandla) against a previous assessment of INR 6,750/MT. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).

Spot iron ore prices in China have increased by 3% W-o-W to USD 65.7/MT, CFR China yesterday as against USD 63.85/MT at the beginning of last week.

Domestic pellet offers in India have still trading at the high rate but this week it seems to be a little slower than last week. A marginal decline in eastern and Central parts of the country assessed.

Eastern India based pellets makers shared thin buying interest. In Durgapur (eastern India) pellet price assessment has decreased by INR 100/MT W-o-W. Reference pellet price assessment for Durgapur stands at INR 7,000/MT (delivered) this week. Though P-DRI prices have increased sharply this week by INR 550/MT at INR 21,900/MT (delivered) against last week's assessment INR 21,350/MT.

In the last few weeks, Durgapur based pellets makers had raised pellet offers by INR 1300-1400/MT. Iron ore rake logistics issue is still critical in the eastern part of India from the last few weeks which has resulted in increased pellet demand.

Central India (Ex-Raipur) pellet prices assessment for this week is at INR 6,100-6,200/MT against INR 6200/MT. Prices have decreased by INR 100/MT W-o-W. P-DRI prices in Raipur have also decreased at INR.19,700/MT(basic) compared to INR 20,300 /MT a week ago.

Southern India (Bellary) based pellet makers have kept prices stable in line with last week INR 6800/MT. P-DRI price assessment in Southern India to INR 19, 500/MT down by INR300/MT this week against INR19,800/MT last week assessment.

Indian Pellet Reference prices as on 12th Jun'18

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