Ex-India pellet prices have inched up marginally over the past week, but still no deals have been reported in the market, with buyers cautious towards higher prices amid the weak demand in China, while sellers have been heard to be pulling back export offers as local sales have continued to offer better margins and volumes, SteelOrbis learned from trade and industry circles on Friday, November 22.
Sources said that ex-India pellet prices are up slightly by $1/mt to the range of $110-112/mt CFR China but, with local sales prices still about $20/mt higher on ex-plant basis, sellers have been focusing on domestic sales and some have also withdrawn export offers to be able to divert port stocks to local steel mills.
The sources said that mills in China still prefer to source from portside stocks as they are readily available and ensure faster deliveries without committing funds for seaborne trade at times of uncertain finished steel prices.
“There has not been any deal of significant volume in November. We have withdrawn several export offers during the month. Local miners in Odisha have hiked prices of fines. We, therefore, have taken a relook at our own production costs. We find that local sales offer better realisations factoring in higher raw material prices compared to exports. We can only commit volumes for overseas sales after further consolidation of ex-India prices by at least another $10-15/mt FOB,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.