Ex-India pellet prices showed marginal gains largely on back of tighter supplies even though firm bids were not reported in the market with mills in China heard to be preferring lower priced fines to meet lower raw material demand during winter months, SteelOrbis learned from trade and industry circles on Friday, December 26.
Sources said that ex-India pellet price was up slightly by around $1/mt to range of $118-123/mt CFR China with price at highest end of the range applicable for high grade with silica-alumina content less than 3 percent.
According to the sources no bids were received during the past week as most sellers continued to push volumes for local sales where realisations were about INR 1,000/mt ($11/mt) than overseas sales, on ex-plant basis.
Buyers are resisting higher prices while sellers, supported by robust local sales volumes and prices, are unwilling to adjust offers for overseas sales resulting in inactive market conditions, the sources added.
“The export market will remain sluggish as weak demand and price sensitivity is likely to keep sellers focused on local sales,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“Both buyers and sellers will be on wait and watch to see how bids and offers align in the New Year,” he added.
