Ex-India pellet prices remained stable during the past week amid very subdued trading owing to combination of fewer active buyers from China and sellers have very little port stockyard volumes of in demand higher grade low alumina content material, SteelOrbis learned from trade and industry circles on Friday, February 14.
Sources said that ex-India pellet prices were quoted unchanged at $116-118/mt CFR China with only an unconfirmed trade for 50,000 mt was heard in the market with price speculated at $116/mt CFR.
The sources said low key export trade activity was not a major cause of concern for producers as local sales realisations on ex-plant basis continued to be about INR 750/mt ($9/mt) higher compared to overseas sales.
According to an official with a pellet producing arm of an Odisha based integrated steel mill, low export activity was owing to absence of buyers from China. At the same time there was uncertainty over raw material demand outlook because of the possible impact of US tariffs on ex-China finished steel and this risked headwind to ex-India pellet prices going forward.
At the same time, trader and producers’ circles were observing current port stockyard volumes of higher grade pellets of alumina content less than 2-4 percent were all locked up in deals concluded during the recent surge in the market and sellers active in meeting robust local demand, they were therefore going slow in pushing export offers.
“Low export availability and better local sales price are keeping overseas deals on a slow track. Higher grade pellets which were being preferred by mills in China are also low in stock,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“Our assessment is that sellers will commence quoting prices at higher levels of $118-120/mt CFR in the short term, once business activity gains momentum in China. But the question is whether such higher prices will be acceptable or not following changes in global trade particularly ex-China once the proposed US tariff is effective,” he said.