Ex-India pellet prices have lost ground as traders in China have submitted lower bids, while domestic market sales have remained robust, prompting sellers not to push for export deals, SteelOrbis learned from trade and industry circles on Friday, September 29.
Ex-India pellet prices have lost $4/mt to $122-126/mt CFR China, but no deals were reported as sellers were heard to be accumulating volumes for local sales and also were keeping volumes ready for a possible price rebound after the long holiday in China.
Sources said that domestic pellet prices have been at around INR 9,500/mt ($114/mt) ex-Barbil in Odisha and, although down by INR 200/mt ($2/mt) over the past week, these prices are still better than realizations from export sales.
“There was pre-holiday restocking interest ahead of the holidays in China. But disparities between offers and bids lead to inactive trade conditions in the market,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“On ex-plant basis, local sales are still INR 1500/mt ($18/mt) better than net overseas sales realizations. Plants are accumulating volumes as restocking from China will emerge as soon as we hear port stocks have fallen by around 0.3 million mt,” he said.