Indian Pellet Offers Weaken Further Amid Dull Demand
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Amid competitive offers from eastern India, central India based steel mills have continued to book pellets from eastern India.
Central India pellet offers still under pressure amid competitive offers from eastern India-
According to market sources, Central India (Raipur) pellet offers have decreased further from the end of last week. Current assessment for Fe 63% pellets is at INR 8,500-8,700/MT (basic, Raipur) against INR 8,800-8,900/MT (basic) at the end of last week. In a week time pellets price have come down by INR 500-600/MT. Buying interest is still weak.
As per reports, an Odisha (Jharsuguda) based pellet maker has sold 5,000MT Pellets towards the end of last week at around INR 8,450/MT landed to Raipur which has kept Raipur pellet offers under pressure.
P-DRI prices in Raipur have also declined sharply by INR 1,400/MT to INR 22,300-22,400/MT against last week assessment at INR 23,800/MT.
Eastern India pellet prices decline further following a decline in semi-finished prices-:
Durgapur pellet price assessment has also come down by INR 200-300/MT to INR 7,900-8,000/MT (delivered) against the last assessment week at INR 8,200/MT. Rashmi Metaliks is still not offering pellets in the domestic market.
P-DRI prices in Durgapur have decreased sharply by INR 800- 1,000/MT to INR 20,400-20,600/MT against last week’s assessment at INR 21,500/MT (delivered).
Indian pellet export market has also remained silent amid ongoing Chinese holidays.
Southern India pellet makers decreased prices marginally:
Southern India (Bellary) based pellet makers have decreased prices by INR 100/MT to INR 8,000-8,200/MT (basic) against last week assessment INR 8,100-8,300/MT.
P-DRI prices have also decreased by INR 1,300/MT to INR 22,100/MT against last week assessment at INR 23,400/MT.
Trade-wise Updates-:
1. Western India pellets maker Jindal SAW is not offering pellets as they are booked for October and have exports lined up too. Last offers heard were at INR 9,400/MT (delivered Kandla).
Indian Pellet Reference prices as on 03rd Oct’18
| Regions | Grade | Base Prices INR/MT |
| Durgapur | 63 | 7,900-8,000 |
| Barbil* | 63 | 8,000 |
| Jharsuguda | 63 | 8,000 |
| Raipur | 63 | 8,500-8,700 |
| Bellary | 63 | 8,000-8,200 |
*loaded to wagons
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
