After an initial consolidation, ex-India pellet prices have trended down during the rest of the past week on the back of a combination of declining futures prices in China, importers cutting back on trade inventories and a weakening of demand in local market, while no deals have been reported even at lower levels, as SteelOrbis has learned from trade and industry circles.
Ex-India pellet prices showed consolidation at higher levels of $175-178/mt CFR China early in the week against average trades in the range of $170-173/mt CFR a week ago, but have settled lower to $165-168/mt CFR subsequently.
“Buyers were not very active. We learn that trade in China is cutting down on inventories as per government advice to check prices. Port stocks in China are, we hear, on the higher side, keeping trades over the past week at a very low level,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Local pellet prices too are on a downtrend, with mills staying away from any large bookings, leading to a rise in stocks,” he said.
Sources said that, while no spot deals have been reported in the market, a private sector plant closed a tender-based export offer for 20,000 mt on Thursday, but no details regarding the price or the buyer are available in the market.