Eastern India Pellet Offers Up; Limited Trades Reported

This week, Durgapur (eastern India) based pellet makers have raised offers following hike in export offers. SteelMint’s reference pellet price assessment stands at INR 6,500/MT (delivered) up by INR 200-300/MT against INR 6,200-6,300/MT in last week.

Rashmi Metaliks is not offering material in domestic markets and is looking for exports, on similar line another major Durgapur based pellet maker is heard giving less quantity in domestic merchant market after export bookings made.

P-DRI prices stable W-o-W at Durgapur to INR 16,800-17,000/MT against last week assessment of INR 16,900-17,000/MT.

Jindal SAW received bookings at increased prices – Western India based pellet maker- Jindal SAW has increased pellet offers by INR 200/MT (USD 3/MT) towards end of last week. Current offers for Fe 63% grade pellets have moved up to INR 9,100/MT (delivered Kandla) against INR 8,900/MT last week. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).

Spot iron ore prices (Fe 62% fines) increased amid shortage of supply concerns for 4 years high to USD 118/MT, CFR China on 20th Jun’19 against USD 109/MT, CFR, China a week before. That level of iron ore price last seen in April 2014. Spot iron ore fine prices are still trading very high amid new Rio-Tinto iron ore shipment guidance reduction of 13 MnT for CY19.

Central India pellet market observes no deals-: Raipur based pellet makers are not offering pellet at the domestic market owing to decent pellet export bookings for China. SteelMint’s assessment for Raipur stands unchanged at INR 6,700/MT. Preference to iron ore lump has softened demand for pellets.

Sponge makers are also not very active to buy pellet, under declining sponge prices. Therefore few of them are taking maintenance shut-down for next 10-12 days and are in wait and watching mode.

P-DRI price declined again this week by INR 200-500/MT to INR 16,300-16,500/MT (basic) compared to INR 16,700/MT (ex-Raipur) a week ago.

Southern India pellets offers down amid falling demand -: Southern India (Bellary) based pellet makers have decreased pellet offers to INR 6,400-6,600/MT against last week assessment at INR 6,500-6,700/MT. P-DRI prices also decreased by INR 500-700/MT to INR 16,700-16,800/MT this week against INR 17,300/MT last week.

Indian pellet trade updates-:

-- Raigarh based pellet makers’ offer assessed at INR 5,800-5,900/MT (ex-plant) and no deal reported at similar levels.

-- A southern India based pellet maker booked around 20,000MT pellets at INR 6,500/MT (ex-Bellary).

-- Jajpur based Brahmani River Pellets has kept the offers at INR 7,200/MT to Kalinganagar based units.