Ex-India pellet prices have inched up in the past week but the pace of the rise is seen to have slowed down as buyers took a pause to reassess the finished steel production trend in China before committing fresh deals, SteelOrbis learned from trade and industry circles on Friday, September 8.
Ex-India pellet prices are up a marginal $2/mt to $123-128/mt CFR China and a few offers have been converted to deals.
The sources said that only a southern India-based pellet producer closed a deal, a tender-based sale for 50,000 mt at $128/mt CFR.
Despite the low trade activity, most sellers maintain an optimistic outlook, claiming that production restrictions on mills in China will not be as drastic as expected and restocking will resume after a brief pause as trade margins from imports are still very positive.
“Recent surges in ex-India prices have made buyers a little cautious and they are holding back deals. But our assessment is that this is only temporary as any production cuts imposed on mills in China will be limited. Pellet prices can move sideways for a few more weeks but downside risks are minimal,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“We hear that port stocks in China are up but by only 0.1 million mt, which is not much and will prompt restocking shortly,” he said.