Reversing a short-lived downward correction, ex-India pellet prices recorded gains as buyers returned seeking large volumes and market further supported by limited offers from local sellers, SteelOrbis learnt from trade and industry circles on Friday, October 31.
Sources said that ex-India pellet prices gained around $2/mt to range of $121-128/mt CFR China with price at the highest end of the range applicable for high grades with silica-alumina content less than 3 percent.
A large deal for around 75,000 mt split into two lots was reported by an eastern India based producer at average price of $122/mt CFR while a second deal for 50,000 mt was confirmed by a southern based seller at $121/mf CFR, the sources said.
It was pointed out that even though realization differential between local sales and exports had narrowed to around INR 600/mt ($6/mt) following the recent gains in ex-India prices, high domestic demand and still better price were prompting sellers to hold back export offers.
They said buoyed by price consolidation over the past week, sellers were awaiting ex-India price to touch levels of $130/mt CFR, before committing higher export allocations.
“Only a handful of pellet plants are active on exports. There is good demand from overseas. But optimism of further gains is leading to few sellers active on exports. This is expected to change if consolidation sustains in the coming weeks and sellers start to restock volumes at ports,” an Odisha based trader said.
