Indian Pellet Manufacturers Raise Domestic Offers on Increased Exports

Higher realizations in exports has pushed up domestic pellet offers in eastern India. Odisha (Barbil) based two major pellet makers have raised offers.

Jindal Steel & Power (JSPL) - a major pellet maker as well as largest pellet exporter in FY17 has announced fresh offers for domestic market at around INR 3,900/MT (loaded to wagons). The company was not seen offering pellets in domestic market since past few weeks over less realizations in domestic market.

Another Barbil based pellet maker - Arya Iron & Steel is also heard to have raised offers by INR 150/MT, as per market sources report to SteelMint. The pellet manufacturer is now heard giving offers around INR 3,700/MT (loaded to wagons) against last offers at INR 3,550/MT (loaded to wagons).

It is to be noted that domestic pellet prices in eastern India have strengthened amid improved realizations in exports. Currently Indian pellet export offers are assessed at USD 85/MT, CFR China.

According to market sources report to SteelMint, around three pellet vessels have been booked by JSPL and few more east India based pellet manufacturers for export to China in last one week. And one more vessel is also in pipeline to be finalised. The vessels carrying nearly 50,000 MT pellets each have been booked for China for Jun'17 & Jul'17 delivery. The deals were concluded at around USD 87/MT, CFR China.