India: Jindal SAW Cuts Pellet Offer Amid Dull Demand

West India (Rajasthan) based pellet maker - Jindal SAW has decreased pellet offers by INR 200/MT (USD 3/MT). Current offers for Fe 63% grade pellets have moved down to INR 8,300/MT (delivered Kandla) against the previous assessment of INR 8,500/MT at last week. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).

Last week, SteelMint reported that western India based steel mills had booked pellet from central India based pellet makers. According to the sources landed cost of pellets at around INR 8,000-8,100/MT.

Competitive offers from central India delivered to western India (Gujarat) kept western India pellet prices under pressure. Also, few Iranian pellet cargoes have arrived at India’s west coast which has become another source of raw material for western India based mills.

Deals reported in central India pellet market after recent price cut-: Raipur (Central India) based pellet manufacturers have reduced offers to INR 6,300/MT (ex-Raipur, GST extra) for Fe 63% grade yesterday. Last offer floated was at INR 6,400/MT (ex-Raipur, GST extra). Thus offers have come down by INR 100/MT. As per the sources reported to SteelMint that around 15,000 MT pellet booked at INR 6,300/MT by Raipur based parties.

Yesterday, Shri Bajrang Power and Ispat Ltd had concluded two pellet export deals recently. SteelMint has learned from company officials that the deal has been concluded at around USD 117/MT, CFR China.

P-DRI prices increased by INR 150/MT to at INR18,750/MT (basic) compared to INR 18,600 /MT a week ago.

Durgapur pellet offers stable-: In Durgapur (eastern India) reference pellet price assessment stands stable at INR 5,800-5,900/MT (delivered) in line with last week assessment.

There is no concrete offer for the domestic market from most of the major pellet makers from Barbil. They are mostly looking for pellet exports. SteelMint’s assessment for pellet export for Fe 63% grade 3% Al pellets stands at USD 117-119/MT, CFR China. This will be equivalent to INR 5,900-6,000/MT (ex-plant) from Odisha.

P-DRI prices have decreased this week at Durgapur to INR 18,100/MT against last week assessment of INR 18,600/MT.

Southern India pellets maker offers unchanged-: Southern India (Bellary) based pellet makers have kept pellet offers unchanged to 7,000-7,300/MT in line with last week assessment. P-DRI price assessment has also declined by INR 200/MT to INR19,300/MT this week against INR19,500/MT last week.

P-DRI price assessment has also declined by INR 500/MT to INR18,800/MT this week against INR19,300/MT last week.

Indian pellet trade updates-:

-- 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 7,000/MT in Bellary.

-- As per the sources NMDC pellet offers from Bellary may reduce pellet offers following decline by merchant pellet makers last week. Currently, NMDC is offering pellet at INR 7,400/MT (FoT basis) at NMDC Donimalai plant.