Indian Domestic Pellet Prices Up in Recent Trades

Towards the year closing, the Indian domestic pellet market has witnessed deals getting concluded at increased offers. Southern India (Bellary) based pellet makers have increased pellet offers by INR 700-800/MT W-o-W. SteelMint's current assessment for pellets (Fe 63%) stand at INR 7,000-7,300/MT (Ex-Bellary) against last week's assessment at INR 6,450/MT. Bellary pellet prices are hovering at 6-months high as these levels were last seen in Jun'19.

Raipur pellet market has also observed deals of around 20,000 MT quantity this week at increased offers. Market sentiments remained positive as today Odisha's Essel Mining has increased iron ore lump offers by INR 400-450/MT and fines by INR 150/MT w.e.f tomorrow.

India Pellet trade log-:

-- Pellet deals for around 20,000 MT reported to Raipur and Durg sponge makers at INR 6,900-7,000/MT (Ex-plant); normalizing for freight to Raipur at INR 7,050-7,150/MT (DAP Raipur).

-- Raigarh based pellet makers have sold around 15,000 MT pellet deals at INR 6,500/MT (EXW) a couple of days back.

-- Bellary based pellet maker has sold around 5,000MT high-grade pellets (Fe 65%) pellets at INR 8,000/MT (EXW) today to Andhra Pradesh (A.P) based Steelmaker. Another Pellet maker from Bellary sold 5,000 MT pellets for Fe 63% grade pellet at INR 6,900/MT a couple of days back.

-- As per the sources, Jamshedpur based pellet maker has concluded around 10,000 MT pellet deal two days back at INR 6,500/MT (EXW). However, Current offers for Jamshedpur increased by INR 100/MT to INR 6,600/MT (EXW).

--Jharsuguda based pellet maker has concluded 5,000 MT pellets at INR 6,500/MT (EXW) this week. Current offers from Jharsuguda based pellet maker at INR 6,600/MT (EXW).

SteelMint pellet reference prices as on 31st Dec'19

**delivered
* Loaded to wagon
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research