Ex-India pellet prices remained range-bound over the past week as previous buoyant mood was reversed with buyers easing restocking operations and stray deals concluded at marginal lower levels, SteelOrbis learned from trade and industry circles on Friday, June 23.
An Odisha based pellet producer concluded a deal for 50,000 mt at $123/mt CFR, marginally down from trades concluded in range of $125-129/mt CFR a week ago.
Another pellet producing arm of an Odisha based integrated mill reported a trade for 30,000 mt at $124/mt CFR China, the sources said.
They said that prices are still stable although the uptrend seen earlier in the month eased slightly as buyers are cautious and holding back deals.
“Deals and price rise have slowed down. But we do not need to worry right now as buyers are taking a pause assessing existing raw material stocks at port side. We hear a strong positive of mills in China increasing blast furnace capacity utilization of averaging around 90 percent. Hence raw material restocking can rebound going forward,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“On the supply side, stocks have arrived at southern ports for loading. Further supplies from plant to port stockyards will tighten as logistical and transportation challenges increase during rainy season. This holds potential for sellers to attempt price increases in July-August,” he said.