Ex-India pellet prices continued to lose ground and no trades were reported on the combination of year end holidays and possible early conclusion of restocking by mills in China ahead of Lunar New Year holidays and sufficient port stocks, SteelOrbis learned from trade and industry circles on Friday, December 27.
Sources said that ex-India pellet prices were down $3/mt to range of $109-111/mt CFR China with no buyers present in the local market while sellers continued to focus on local sales which was currently fetching INR 1,020/mt ($12/mt) higher than overseas sales.
They said that with economic stimulus having limited impact on finished steel prices, mills in China were restricting presence in seaborne cargo trade and calling early halt to restocking and anticipating that port stocks were sufficient to meet immediate raw material needs.
“Export is less attractive as local sales continue to be robust in terms of price and sales volume. Some producers are maintaining port-side stocks anticipating some increase in export activity in the New Year and at the same time strategizing logistics to divert sales to inland local mills by diverting port stocks at the same time,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“We do not think local pellet producers will actively push offers unless acceptable ex-India prices recover around the $120/mt CFR mark as local demand will keep pressures to sell overseas in check,” he added.