Iron pellet producers rally up to 8%
NEW DELHI: Shares of pellet producers shot up to over 8 per cent in the afternoon trade on Monday.
Thanks to China's move to clean up its air, the price of pellets, has soared. The premium over so-called 62 per cent fines, the benchmark iron ore product, is at record highs, said a report by Reuters dated August 17.
This apart, the companies had a rub-off effect after Sarda Energy's management commentary on the company's prospects.
Sarda Energy, the flagship company of Sarda Group, rallied as much as 8.84 per cent during the day. In a telephonic TV interview with CNBC TV18 on Monday, the management said the prices of pellet and sponge will sustain at the current levels and the increase in price is due to high demand.
The company said it expects to maintain the volume around Rs 6,00,000 tonne. It also claimed the company is debt-free at standalone level.
At 01:04 pm, the stock was trading 6 per cent higher at Rs 396.65 piece on BSE. Jindal Saw jumped 7.16 per cent to Rs 85.35 apiece on BSE.
Other companies such as Godawari Power and JSPL were up 2.45 per cent and 2.29 per cent, respectively.