India: Domestic Pellet Prices Climb Further in Recent Deals

According to the market participants reported to SteelMint, Durgapur pellet prices have increased further in recent trades concluded today. In Durgapur (Eastern India) prices hike by around INR 500-600/MT D-o-D. SteelMint’s reference pellet price assessment stands at INR 6,900/MT against INR 6,300-6,600/MT /MT yesterday.

SteelMint heard a deal for 5,000 MT pellets (Fe 63%) getting concluded by Durgapur based pellet maker at INR 6,900/MT today.

Increased bookings in exports, hike in iron ore prices and increase in sponge offers have supported the pellet price hike. Prices have moved up amid hike in sponge prices. In the last two days, Durgapur pellet price increased sharply by INR 900-1000/MT.

P-DRI prices have increased by INR 1,000-1,100/MT this week at Durgapur to INR 18,500-18,700/MT against last week assessment of INR 17,500/MT.

Jamshedpur pellet prices also moved sharply by INR 200-300/MT to INR 6,300-6,400/MT as against last assessment yesterday of INR 6,100-6,200/MT.

Jindal SAW hikes pellet offers further – Bhilwara (Rajasthan) based pellet maker – Jindal SAW has raised pellet offers to INR 8,600/MT (del. Kandla) today for Fe 63% pellets. This is higher by INR 150/MT against yesterday. As per sources, the pellet maker has indicated revised offers of INR 8,900/MT (del. Kandla) that are expected to come into effect from tomorrow. Hike in global iron ore prices made imported lump costlier. Ready stock of South African lump is around USD 125/MT, CFR Kandla.

Central India pellet prices stable -: Current prices for Raipur hovering at 3-month high. SteelMint assessment for Raipur offers stable at INR 6,800-7,000/MT in line with yesterday end of the day assessment. Very limited deals were reported at raised offers of INR 6,800-6,900/MT. Two major pellet makers in Raipur are still not offering material presently owing to upcoming maintenance shutdown at one plant and export orders lined up.

P-DRI increased by INR 100-200/MT D-o-D from the last assessment. On weekly basis, P-DRI prices increased significantly by INR 600-800/MT to INR18,900-19,100/MT (basic) compared to INR 18,300/MT a week ago.