Southern India Pellet Offers Hit 10-Months Low Amid Weak P-DRI Prices

Bellary (southern India) based pellet makers have lowered pellet offers by INR 100-200/MT this week. SteelMint’s assessment for pellets stands at INR 6,300-6,500/MT against last week assessment at INR 6,700-6,900/MT.

Pellet prices for Southern India have moved down by INR 800-900/MT M-o-M as against INR 7,150/MT a month back. Bellary pellet prices are hovering at 10-months low as these levels were last seen in Aug'18.

P-DRI prices in Bellary also decreased by INR 300-500/MT W-o-W to INR 16,300-16,500/MT this week against INR 16,800/MT last week. In a month’s time sponge prices have come down sharply by INR 2,000/MT as against INR18,600/MT.

Limited sellers from central India-: SteelMint learned that Godawari Power & Ispat, Jayaswal Neco and Sarda Energy are not heard quoting offers in the merchant market. Major Raipur based pellet makers are not offering pellets in the domestic market amid high realization in exports and previous export bookings made. However, SteelMint assessment stands at INR 6,800-7,000/MT (ex-Raipur) against last week’s offer at INR 6,800/MT. Pellet maker are in wait and watch mode to observe the market more closely before taking any further steps.

P-DRI price has shown some improvement by INR 200-400/MT W-o-W to INR 16,500-16,700/MT (basic) compared to INR 16,400/MT (ex-Raipur) a week ago.

Durgapur pellet offers stable -: In Durgapur (eastern India) SteelMint’s reference pellet price assessment stands at INR 6,500-6,600/MT (delivered) in line with last week assessment.

P-DRI prices have increased sharply by INR 500-700/MT W-o-W at Durgapur to INR 17,400-17,600/MT against last week assessment of INR 16,900/MT.

Indian pellet trade updates-:

-- Raigarh based pellet makers’ offer assessed at INR 6,200-6,400/MT (ex-plant). Yesterday one of the pellet maker was concluded pellet deal for 5,000 MT at INR 6,150/MT following which it raised its offers to INR 6,200/MT.

-- West India based pellet maker - Jindal SAW has kept offers unchanged this week at INR 9,100/MT delivered Kandla.

-- Southern India pellet maker Janki Corp. has taken one week maintenance shutdown. Another southern India based pellet maker sold 15,000 MT pellets at INR 6,400/MT (ex-Bellary).

--Jajpur based Brahmani River Pellets is offering pellets at INR 7,300/MT for Kalinganagar based units.