Ex-India pellet prices have consolidated at higher levels on the back of the revival of large-volume booking by buyers from China amid the optimistic outlook for steel demand and prices, SteelOrbis learned from trade and industry circles on Friday, November 3.
Sources said that ex-India pellet prices have risen by $2/mt to the range of $131-134 CFR China, with aggregate deals concluded over the past week estimated at 250,000 mt.
The single largest deal, for 111,000 mt, was reported by an Odisha-based pellet producer at $134/mt CFR China to be delivered in three lots over the November-December period, the sources said.
A pellet-producing arm of an Odisha-based integrated steel mill concluded a deal for 30,000 mt at $132/mt CFR China, while a central India-based producer reported a trade for 20,000 mt at around $131/mt CFR.
“There is renewed optimism among raw material buyers based on government support for steel demand in China. Mills in the country have more confidence in restocking raw materials and, even though the rise in finished steel prices has been modest, it will most likely gain momentum once government support takes effect,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Also in the local market, pellet exports are getting very good prices and net realizations are on average INR 1,500/mt ($18) higher than those from domestic sales. In fact, plants closer to ports like those in Odisha have been diverting large volume from local sales to exports,” he said.