India: Domestic Pellet Market Exhibits Mixed Response

Domestic pellet prices in India have observed a mixed response this week. Few pellet makers in Durgapur (eastern India) have increased offers this week by INR 100-200/MT. However, in central, southern and western India pellet market sentiments continue to remain dull.

Durgapur based pellet makers increased offers amid hike in fines prices-:

In Durgapur (eastern India) reference pellet price assessment stands at INR 5,800-5,900/MT (delivered) this week against last week’s assessment INR 5,600-5,700/MT. One of the pellet makers from Durgapur has concluded pellet deal for 5,000MT at INR 5,900/MT recently. Participants mentioned that following recent hike of INR 200/MT in Odisha iron ore fines, pellet offers have inched up.

Barbil pellet offers are assessed at INR 5,700-5,800/MT (loaded to wagons).

P-DRI prices have decreased this week at Durgapur to INR 18,500-18,700/MT against last week assessment of INR 19,100/MT.

Southern India pellets makers reduce offers-: Southern India (Bellary) based pellet makers have lowered prices by INR100/MT to 7,200-7,300/MT against INR 7,200-7,400/MT last week. P-DRI price assessment has also declined by INR 200/MT to INR19,300/MT this week against INR19,500/MT last week.

Earlier the iron ore movement was hampered by road and rails as DMG (Department of Mines and Geology, Govt of Karnataka) was making changes in its software system to integrating with the forest department, buyer, route, vehicle, and destination altogether at one platform for providing better service to their clients. This hampered iron ore movement which in turn supported pellet prices. However, with the resumption of operations of ILMS software, iron ore availability has improved.

Central India pellet makers hold offers, no deals reported-: Pellet offers for this week is stable at INR 6,400/MT in line with last week assessment. No deal has been reported at this level so far. However, SteelMint learned from the major sponge makers in central India that buying interest for pellets at INR 200-400/MT lower than the current offers. Thus it is expected that pellet prices may witness downward revision in the near term.

P-DRI prices decreased by INR 100/MT to at INR18,600/MT (basic) compared to INR 18,700 /MT a week ago.

Indian pellet trade updates-:

-- West India based pellet maker - Jindal SAW has kept offers unchanged this week at INR 8,500/MT delivered Kandla. Limited deal reported at this level, therefore some price correction from pellet maker expected in upcoming days.

--Jajpur based Brahmani River Pellets has kept the offers firm at INR 6,700/MT to Kalinganagar based units.

--Raigarh based pellet makers’ offer remains stable at INR 6,000/MT (ex-plant)

--Southern India based Janki Corp is offering Fe 63% grade pellets at INR 7,200/MT in Bellary.