India: Odisha Based Pellet Maker Concludes a Bulk Deal

Odisha based major pellet maker is heard to have concluded a pellet deal for around 100,000 MT of Fe 63.5% grade and 3% alumina. As per sources, the deal has been concluded at around INR 5,800/MT (loaded to wagons). As per sources, the deal has been concluded to a major steelmaker in eastern India. Freight from pellet plant to steel mill is around INR 400/MT.

Currently, pellet offers from eastern have been increased marginally and it seems to be temporary amid some quick demand. Durgapur pellet prices have witnessed up by INR 100/MT to INR 5,600-5,700/MT this week against the end of last week's assessment of INR 5,500-5,600/MT. P-DRI prices have also increased up this week to INR 19,000/MT.

According to SteelMint study, Eastern India accounted for 50% share in total India's pellet production in FY'18. Odisha is the biggest pellet producer in India with 27.1 MnT capacity and produced 17.66 MnT which is 65% of total share of eastern India. Major plants in this area are Essar Steel (Paradip), Jindal Steel & Power, Tata Steel, BRPL etc.