Ex-India pellet prices have softened slightly during the past week as trade activity has eased and no new deals have been concluded since buyers have preferred to wait fresh pricing signals from the outcome of a number of active offers for high grades in the market, SteelOrbis learned from trade and industry circles on Friday, July 24.
Sources said that ex-India pellet prices are down slightly by around $1/mt to $116-118/mt CFR, with the price at the higher end applicable for high grades with silica-alumina content less than three percent.
Even though no deals have been confirmed over the past week, according to trade circles an estimated 100,000-130,000 mt of high-grade pellet offers are still active in the market and the finalization of these volumes will set a new pricing trend and is being awaited by buyers.
The slightly subdued market for iron ore fines has also impacted trade activity for pellets, the sources added.
It was pointed out that, from the sellers' point of view, export and domestic sales realizations are almost on a par and hence producers are also waiting for a clear direction before deciding on allocations for domestic sales vis-à-vis exports.
“Chinese buyers have turned cautious after recent price increases. But a correction is not imminent as the supply side in India is tight because of lower supplies of iron ore fines from pithead to pellet plants during the current monsoon season,” a member of the Pellet Manufacturers' Association of India (PMAI) said.
