Ex-India pellet prices have showed a marginal rise over the past week and, even though no deals were reported during the week, sellers have been holding the price line, expecting improved buying activity as the pace of business gains momentum after the holiday in China and mills resume restocking, SteelOrbis learned from trade and industry circles on Friday, February 27.
Sources said that ex-India pellet prices are up a modest $1/mt to the range of $108-111/mt CFR China, with the price at the highest end of the range applicable for high grades with silica-alumina content of less than three percent.
According to the sources, buyers’ inquiries are starting to come in but no bookings have been confirmed, but sellers are optimistic and are waiting for a new price direction to emerge before they commit volumes for overseas sales.
It is noted that, based on inquiries, it may be assumed that there are still significant differences between the expectations of buyers and sellers, and this would need to be bridged before deals can be successfully concluded.
Currently, realizations from local sales are still $15-17/mt higher, on ex-plant basis, over export sales at current ex-India prices. Hence, unless the prices acceptable to buyers from China improve after the holiday, Indian sellers will continue to remain focused on their domestic market and cautious on the export front.
An export tender by a southern India-based producer for 50,000 mt is currently ‘active’ and will close in the middle of next week, and the highest bid information will provide an indication of the next export price trend, the sources added.