Indian pellet exporters have attempted to nudge up prices amid expectations of restocking ahead of the long holiday in China, but buying has remained subdued and prices have fallen back towards the close of the week, SteelOrbis has learned from trade and industry circles.
Ex-India pellet prices were pushed up to a week’s high of $120-130/mt CFR China, but pre-holiday buying remained subdued confined to few low-volume deals, with prices settling down at $110-115/mt CFR, marginally higher than $100-105/mt CFR.
Trade circles said that an Odisha-based pellet producing arm of an integrated steel mill reported a trade for 15,000 high grade pellets at $130/mt CFR, but the very same seller failed to find any response for an offer of 30,000 mt later in the week.
Brahmani River Pellets Limited was heard to have concluded a small tonnage for 10,000 mt at around $110/mt CFR, the sources said.
“The market has been showing uncertainty since early this month with prices failing to consolidate early gains. Buying interest from China has been very sporadic. Blast furnace operators in China have been preferring high grade lumps readily available over imported pellets,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Even though pellet trade volumes remained low as buyers were awaiting iron ore price signals from NMDC Limited, prices have remained strong, prompting sellers to largely refrain from pushing overseas sales.
Sources said that the pellet trade price at Raipur in central region has been reported at around INR 8,100/mt ($99/mt) ex-plant, up INR 100/mt ($1.25/mt).