Ex-India pellet prices have continued to consolidate at higher levels amid robust pre-holiday bookings last week both in terms of volumes and the number of deals concluded, with a number of buyers showing a marked preference for higher grade low-alumina pellets, SteelOrbis learned from trade and industry circles on Friday, January 31.
Sources said that ex-India pellet prices have gained $2/mt to the range of $116-118/mt CFR China, with the higher grade fetching $120-122/mt CFR including premium.
According to the sources, a single eastern India-based pellet producer concluded a deal for three separate cargoes aggregating 165,000 mt. Deals for two cargoes were closed at the average price of $116/mt CFR, while the third cargo with silico-alumina content of less than two percent was reported at $120/mt CFR.
Another Odisha-based pellet producer has reported a trade for 100,000 mt of material with silico-alumina content of seven percent at $115/mt CFR, the sources said.
A tender-based deal for 100,000 mt was also closed during the past week, with the highest successful bid reported at $118/mt CFR, the sources said.
“The market dynamics and mood are good. They are well supported by strong buying interest. Buyers sought large volumes and workable prices also improved. More significantly, the buyers are more interested in higher grade pellets and are willing to accept a premium to close a deal,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“However, with the Lunar New Year holidays, trade activity eased off this week. We expect a new price trend to emerge once business activity resumes after February 5. It is possible that some buyers were actively closing deals for deliveries after the holidays to lock in current prices, expecting a further surge once business resumes next week,” he said.