Ex-India pellet prices have remained stable in the past week, although trading activity has lapsed significantly with buyers from China absent and sellers awaiting a new price direction once business activity resumes amid a positive outlook, SteelOrbis learned from trade and industry circles on Friday, February 7.
Sources said that ex-India pellet prices have been maintained at $116-118/mt CFR China following the increases in previous weeks.
Even though no spot trades have been reported over the past week, tender-based sales have continued to attract bid levels similar to previous tenders, prompting sellers to maintain optimism over the market direction after the holiday in China.
The sources said that an eastern India-based pellet producer concluded a tender-based sale of 50,000 mt, receiving a highest bid of around $118/mt CFR, similar to the tender-based sale of a larger tonnage in the previous week.
“Realisations from domestic sales are still higher by around INR 700/mt ($8/mt) on ex-plant basis amid robust demand from local mills. Hence, sellers are well placed during the current lull on the export front. We expect a clearer picture on ex-India prices once business activity resumes in China,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Exporters will keep a watch over global price movements before taking a decision to replenish stocks at port stockyards for overseas sales. For now, there is good movement of volumes from plants to domestic mills,” he added.