Ex-India pellet prices have recorded strong gains over the past week and, even though a limited number of deals were concluded during the week, the tightening of supplies owing to monsoon rains and somewhat livelier Chinese buying interest have supported the market, SteelOrbis learnt from trade and industry circles on Friday, July 10.
Ex-India pellet prices (with silica-alumina content above three percent) gained $4-5/mt to the range of $115-117/mt CFR, while higher grades (silica-alumina content below three percent) were sold slightly higher at $118-119/mt CFR.
According to the sources, two deals were confirmed, with one tonnage of 55,000 mt sold at $118/mt CFR. Another high-volume deal for 115,000 mt of high-grade pellet with silica-alumina content less than 1.5 percent was done at $124/mt CFR, in line with last week.
Even though the number of deals was limited, port stocks held by sellers were on the lower side, as supplies from plants to port stockyards in the eastern region were reporting logistical and transportation disruptions from monsoon rains, prompting sellers to quote higher prices for shorter delivery timelines.
The higher prices received support since a higher number of buyer-seller negotiations were being reported in the market, indicating renewed interest from buyers in China.
“The fresh buoyancy is reflective of multiple active negotiations. Low exportable inventories are providing additional support to prices. Of course, part of the rise in CFR prices can also be partially attributed to the rise in freight costs,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“But it also needs to be noted that the bulk of buying interest is for higher grades. Trade volumes for regular grades need to improve for the market to consolidate higher,” he added.
