Ex-India pellet prices have remained under pressure over the past week and have lost ground with the long holiday about to start in China and mills becoming cautious amid weakening global fines prices, while even a very large tender-based sale concluded during the week failed to boost export sentiments, SteelOrbis learned from trade and industry circles on Friday, February 13.
Sources said that ex-India pellet prices are down $2/mt to the range of $110-113/mt CFR China with the price at the higher end of the range applicable for high grades with silica-alumina content less than three percent.
According to the sources, a southern India-based pellet producer successfully closed a tender-based sale for 175,000 mt, considered “very large”, receiving the highest bid in the range of $90-93/mt FOB, but this single confirmed deal during the week failed to improve sentiments among sellers.
It was pointed out that, following the hikes in local pellet prices effected over the past week, the difference between domestic sales and export prices is an estimated INR 1,500/mt ($17/mt) ex-plant Odisha, causing producers to focus on local sales and to hold back export volumes.
“We are using almost the entire output of our captive pellet plant at our integrated steel mill. Current bids for regular grade pellets are too low for our consideration,” an official at an Odisha-based private mill said.
“Trade activity will be low with China going into holidays. We will reassess our export allocations once business resumes and based on any new pricing trend that may emerge then,” he added.