Ex-India pellet prices have continued to consolidate at higher levels during the past week as buyers have increased activity and a higher number of successful deals have been reported in the market, while Indian producers have commenced restocking volumes at port stockyards based on the revived outlook, SteelOrbis learned from trade and industry circles on Friday, May 15.
Sources said that ex-India pellet prices have moved up by an average of $2-4/mt to $120-123/mt CFR China, with the price at the higher end applicable to high grades with silica-alumina content less than three percent, but even higher levels have already been voiced in the market.
Sources said that a central India-based pellet producer has reported a deal for 55,000 mt at around $122/mt CFR. Another pellet producing arm of an Odisha-based integrated steel mill concluded a deal at $122/mt CFR though information regarding the tonnage was not available in the market.
Two other deals were talked about in the market, aggregating 75,000 mt at higher prices in the range of $124-125/mt CFR China, but no confirmation of these details was available.
With the improvement in ex-India prices, a number of inland pellet producers were heard to be restocking volumes at port stockyards, which had recently seen a drawdown as sellers were focused on serving mills in the hinterland.
“There is strong positive mood in the market supported by reports of good steel production and prices in China. This is reflected in more buyers being active in committing to raw material imports. We see this momentum gaining ground over the coming weeks. However, we hear port stocks in China are on the higher side, and this can potentially limit further gains in pellet prices,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
