Ex-India pellet prices have remained stable with no major deals confirmed in the market as buyers have been submitting low bids, while sellers have preferred higher realisations in local sales, SteelOrbis learned from trade and industry circles on Friday, March 14.
Sources said that, while ex-India pellet prices have continued to be quoted in the range of $108-109/mt CFR China and while there have been very few buyers active in the market, a few bids have been reported at lows of $98-104/mt CFR, but sellers have not been willing to match such prices.
It was pointed out that local sales realisations are at about INR 1,750/mt ($20/mt) higher than export realisations on ex-plant basis and hence sellers had little incentive to accept lower bids of overseas buyers.
“The futures market in China remains weak. Mills in China are also not showing interest in imports. Unless buyers representing Chinese mills begin restocking and the export-local price differential is bridged, local pellet producers will continue to maintain ex-India offers while focusing on local sales,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Some pellet producers have started diverting port stockyard export volumes for sales to local mills in the hinterland, indicating that they do not see an immediate rebound in overseas sales and prefer to increase offerings in the local market,” he said.