India: Raipur Pellet Makers Hike Offers by INR 100/MT Following P-DRI Price Rally

Raipur (central India) based pellet manufacturers have increased offers today (i.e 25th May) by INR 100/MT. Revised offers for Fe 63% grade stands at INR 6,000/MT (ex-Raipur, GST extra) as against last offers of INR 5,900/MT (ex-Raipur, GST extra).

Prior to this, towards the beginning of last week pellet manufacturers had increased offers by INR 200/MT. This is the second hike in the last one week's time.

As per the sources, as the P-DRI price has increased sharply on a daily basis by around INR 700/MT which led to increase in pellet offers. Also few trade sources mentioned that Odisha based pellet makers were not active in the last 4-5 days in the merchant pellet market, which also resulted in a hike in Raipur pellet offers. The market expects a hike in pellet offers from Odisha too in the near short term.

SteelMint P-DRI assessment (May 25, 2020) at INR 16,100-16,300/MT (Ex-plant) as against last assessment on 23rd May at INR 15,500/MT(Ex-plant).

Jamshedpur pellet maker also hike offers by INR 200/MT- Jamshedpur pellet maker has also increased pellet offer today by around INR 200/MT to INR 5,400/MT (EXW, GST extra) against last offer at INR 5,200/MT (EXW, GST extra).

As per the sources, two days back they had sold around 7,000 MT pellets at INR 5,200/MT (EXW, GST extra).