Ex-India pellet prices have suffered setbacks over the past week, as buyers representing mills in China have retreated preferring alternative cheaper feedstock fines and even stray bids were considered too low, resulting in near silent trade conditions, SteelOrbis learned from trade and industry circles on Friday, December 12.
Sources said that ex-India pellet prices have declined $3/mt to the range of $114-119/mt CFR with the price at higher end of the range applicable for high grades with silica-alumina content less than three percent.
However, with domestic sales realizations still about INR 1,000/mt ($11/mt) higher than exports margins, on ex-plant basis, stray bids received from overseas in the range of $109-114/mt have failed to result in any firm trades over the past week.
“Mills in China are preferring lower-priced iron ore fines. On the other hand, sellers maintaining better margins in local sales are not willing to adjust prices to push sales overseas. There is a stalemate in the market with both buyers and sellers reassessing the expected market trends ahead, before making any fresh commitment,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Price will remain range-bound for now. Some sellers may consider adjustments in the weeks ahead to trigger activity, but much of this will depend on local price movements,” he added.