Ex-India pellet prices remained stable and even though no deals were reported over the past week, trade activity was expected to improve based on a greater number of enquiries and sellers willing to increase export exposure even at slightly lower prices in the face of steady declines seen in local sales, SteelOrbis learned from trade and industry circles on Friday, May 29.
Sources said that ex-India pellet prices were stable in the range of $116-119/mt CFR China, with the price at the highest end of the range applicable to high grades with silica-alumina content of less than three percent.
Even though trade activity remained silent, several market participants said it was poised to improve, with more enquiries coming from buyers in China on one hand and local pellet producers increasing their focus on overseas sales. Deals could be concluded after some price adjustments as local sales prices were steadily seeking lower levels.
A section of the market claimed that, based on industry estimates, around 100,000-150,000 mt were currently under negotiation, which was taking time because buyers from China were willing to conclude deals but were still price-sensitive.
It was pointed out that domestic sales realizations were down by around INR 200-400/mt ($2-4/mt) after several large producers dropped prices as large mills were curtailing volume bookings while faced with rising energy costs.
“A number of large pellet producers which had sharply reduced port stockyards and diverted volumes for inland supplies are reversing their focus and restocking volumes at ports, expecting to revive exports. But the current challenge for sellers is that while demand is expected to revive, prices are unlikely to. The indication is that sellers will need to adjust prices to conclude trades,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
