Ex-India pellet prices have remained stable over the past week but trade activity has been muted by the absence of buyers from China, indicating weak demand, while sellers have maintained low exportable volumes at ports, focusing instead on local sales, SteelOrbis learned from trade and industry circles on Friday, January 9.
Sources said that ex-India pellet prices have been kept unchanged in the range of $120-125/mt CFR China, with the price at the higher end effective for high grades with silica-alumina content less than three percent.
The almost silent trade activity was broken by a sole deal for 50,000 mt concluded at $126-128/mt for high grade pellet with alumina content less than two percent and Fe content above 64 percent, the sources said.
According the sources, an offer for 75,000 by an Odisha-based seller was pulled out after the buyer and seller failed to arrive at a workable price.
However, a section in the market said producers are expected to increase offers and more deals to fructify in the coming weeks as the differential between domestic sales prices and export realizations has narrowed significantly. It estimated that the currently local sales realization is about INR 500/mt ($5/mt) higher than exports on ex-plant basis.
“Despite the lack of trades, ex-India price stability is a positive and is expected to drive more overseas sales soon. Sellers are on wait and watch. Buyers representing mills in China are also cautious because port inventories are comfortable. But with port stock drawdown and import prices stable, we expect buyers to start bidding soon,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
