While iron ore prices have increased in CFR terms to China today on tight supply concerns, the central India pellet producers lowered prices after NMDC announced price cuts on iron ore for April.
On March 25, SteelOrbis reported that Indian domestic pellet offers were trending at INR 6,000-6,300/mt ($87-91/mt) ex-Raipur and at INR 5,700-5,900/mt ($83-86/mt) ex-Durgapur. Sources inform that on April 3 prices are reportedly at INR 6,000-6,200/mt ($88-91/mt). Due to currency improvements of the INR against the dollar, the bottom of the range improved by $1/mt while the top of the previous range remained stable. The global iron ore market is expected to support domestic prices, but a source noted that domestic prices are being affected by over-supply and some mills reducing iron ore sourcing from NMDC.
USD = INR 68.89 (Mar 25)
USD = INR 68.48 (Apr 3)