India: Domestic Pellet Market Observes Limited Trades

Durgapur (eastern India) based pellet makers have raised offers following hike in sponge prices. 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 the domestic markets for the quite long time and continuously looking for exports. Last week major pellet maker was in maintenance shut down.

P-DRI prices stable W-o-W at Durgapur to INR 16,400-16,500/MT in line with the last week’s assessment.

No deals reported yet at raised offers-: Raipur (Central India) based pellet manufacturers had increased their offers yesterday by INR 200/MT. Current offers for Fe 63% grade at INR 7,000/MT (ex-Raipur, GST extra) as against last assessment at INR 6,800/MT. However, bulk buyers continue to prefer iron ore lump over pellets owing to high pellets price which kept pellet trades low. Limited deals were reported at INR 6,800/MT (ex-Raipur).

SteelMint has learned from the sources that Jharsuguda based pellet maker has sold around 3,000-5,000 MT pellet to Raipur yesterday. As per the sources, the deal was concluded at around INR 6,200/MT (ex-plant).

P-DRI prices increased by INR 700-900/MT W-o-W to INR 16,500-16,700/MT (basic) compared to INR 15,800/MT (Ex-Raipur) last week.

Southern India pellet offers up marginally-: Southern India (Bellary) based pellet makers have increased pellet offers to INR 6,200-6,400/MT against last week’s assessment at INR 6,100-6,300/MT. P-DRI prices also increased by INR 200-400/MT to INR 16,100-16,300/MT this week against INR 15,900/MT last week.

Indian pellet trade updates-:

-- Raigarh based pellet makers’ offer assessed at INR 6,400/MT (ex-plant). One of the major pellet makers from Raigarh is not offering in the domestic market.

-- Jajpur based Brahmani River Pellets has kept the offers at INR 7,400/MT to Kalinganagar based units.

-- West India based pellet maker - Jindal SAW has kept offers unchanged this week at INR 8,700/MT delivered Kandla.

-- Last week an eastern India based steel maker procured around 25,000 MT pellets from Odisha based pellet maker.