Ex-India pellet prices remained stable during the past week amid ‘good’ buying activity with buyers continuing to show more interest in higher grades with low alumina content, SteelOrbis learned from trade and industry circles on Friday.
Sources said that ex-India pellet prices were stable in range of $116-118/mt CFR China and higher grade pellets (alumina content 3 per cent and lower) commanding a premium of average $2-3/mt.
According to the sources an Odisha based pellet producer concluded a trade for 75,000 mt at $116/mt CFR while another sellers also from Odisha reported a deal for 55,000 mt at $117/mt CFR.
Another southern based pellet plant was heard to have concluded a trade for 50,000 mt at $120/mt inclusive of premium for the grade of alumina content less than 2 per cent the sources said.
“Prices are moving in a narrow range. Number of deals heard in the market may be less compared to earlier weeks but transactions at ‘decent’ prices were finalised during the past week,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“Local sales realisations is still INR 700/mt ($8/mt) better than overseas sales on ex-plant basis. Producers are keeping a close watch of iron ore auctions to be held in Odisha in the coming weeks. Our assessment is that auction price will see a rise. This will lead to higher production cost of pellets. Therefore pellet sellers are hoping for some more consolidation in ex-India price to enable them to sustain volumes sales overseas,” he said.