Eastern India Pellet Price Fall to 7-Months Low Amid Less Trades

Durgapur pellet prices have moved down by INR 200-300/MT this week to INR 6,100-6,200/MT against last week’s assessment of INR 6,400/MT. Trade sources reported limited trades at these prices. These price levels have hit seven months low and these levels were last seen in May 2018.

P-DRI price has also decreased sharply by INR 1200-1400/MT to INR 18,400-18,600/MT against last week’s assessment at INR 19,400-19,600/MT.

Absence of pellet offers in central India - Raipur based pellet makers were heard not offering pellets and are learned to have hold offers amid previous bulk bookings made. SteelMint’s current assessment for Raipur pellet stands at around INR 6,200/MT (ex-Raipur) against last week assessment at INR 6,400-6,500/MT towards the beginning of last week. Market sentiments are still low.

P-DRI prices in Raipur decreased by INR 400-500/MT to INR 19,400-19,600/MT against last week assessment at INR 20,000-20,100/MT.

Southern India Pellet market seems stable- Southern India (Bellary) pellet prices have remained stable at INR 7,200 (basic) in line with last week’s assessment. P-DRI price decreased by INR 200-300/MT to INR 19,500-19,700/MT against INR 19,700-20,000/MT last week assessment.

India pellet trade updates-:

1. West India based pellet maker - Jindal SAW offers has kept offers firm this week also at INR 8,300/MT, delivered Kandla. Pellet maker is likely to open fresh offers next week.

2. Barbil based Jindal Steel & Power is not offering pellet in the domestic market. However Arya Iron & Steel is offering pellets at INR 5,500-5,600/MT (loaded to wagons).

Indian Pellet Reference prices as on 26th Dec'18

**delivered
*loaded to wagons
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research