Ex-India pellet prices have continued to inch down over the past week as trade activity has fallen sharply amid the holiday in China, while buyers have not been submitting fresh bids with stray deals concluded at lower price levels, SteelOrbis learned from trade and industry circles on Friday, February 20.
Sources said that ex-India pellet prices are down $3/mt to the range of $107-110/mt CFR with the price at the higher end of the range applicable for high grades with silica-alumina content of less than three percent.
According to the sources, a southern India-based seller closed a tender-based sale for 50,000 mt with the highest bid reported at $90/mt FOB, while another tender-based sale of a similar tonnage was also closed, but no information regarding the successful bid has been available in the market.
It was pointed out that these two tenders were closed over the past week, but no spot trades have been reported during the week as sellers do not consider current prices to be viable, against the backdrop of good local demand and prices and the rising cost of iron ore fines from mines.
“There have not been any fresh enquiries or bids in view of the New Year holiday in China. At the same time, local pellet prices remain firm and demand and supply are evenly matched, offering sufficient local sales opportunities. Eastern India-based producers continue to maintain minimal port stocks for export,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Mills in China completed their restocking well ahead of the holidays. For now, exports will remain quiet. Sellers will wait for business to resume and a new price trend to emerge. They will see how acceptable prices work out and if sellers can pass on the higher cost of fines,” he added.