India: NMDC Slashes Pellet Offers from Donimalai Plant

South India (Karnataka) based - NMDC Donimalai Pellet Plant has reduced pellet offer by INR 370/MT to INR 7,030/MT (FoT basis) as against last offer at INR 7,400/MT (FoT basis). Company offering 24,000 MT pellet with content Fe 64% Fe: 64 (+/- 0.5%) and 2.5 Al. Rake loading can be arranged at extra Cost of INR 105/MT (including GST).

NMDC Ltd is operating 1.2 MnT pa capacity pellet plant located at Donimalai, Karnataka.

Southern India (Bellary) pellet offers for Fe 63% grade remains stable at INR 7,000-7,100/MT in line with last week's assessment.

A couple of weeks back Bellary pellet prices were increased to INR 7,300-7,400/MT owing to DMG (Department of Mines and Geology, Govt of Karnataka) had been making changes in its software system. This is a permit system through which iron ore is getting transported from mines to respective plants. ILMS application was Integrating with Forest department, buyer, route, vehicle, and destination altogether at one platform for providing better service to the clients. Amid logistics issues, many steel mills are seen preferring using pellets.

However later with the resumption of functions in the software system, iron ore movement issues eased out resulting in decline in pellet prices.

Bellary P-DRI price on 4th May 2019 also seems to be stable at INR 18,800/MT in line with the last week's assessment.