Southern India Pellet Prices Hit 2-Month High

Bellary (southern India) based pellet makers have raised offers sharply following hike in P-DRI and billet prices. SteelMint's current assessment for Fe 63% grade pellets stands at INR 7,100-7,400/MT (Ex-Bellary, GST extra). On weekly premises, prices have moved up by INR 400-500/MT against last assessment at the beginning of this week at INR 6,800/MT. Prices have hit 2-month high as similar price levels were last seen in end of Dec'18.

Sponge Pellet (FeM 80%) prices in Bellary have also increased significantly by INR 1300-1500/MT in a week's time and is assessed around INR 20,300-20-500/MT (Ex-Bellary) as against INR 18,900/MT last week.

India has an installed pellet capacity of 83.32 MnT p.a. Southern India accounts for 34% share in the capacity at 27.5MnT p.a.