India’s pellet export activity has become quiet over the past week with the uncertainties regarding demand and the impact of the fresh lockdown in China keeping buyers away and local sellers being unwilling to adjust prices despite the lack of business activity, SteelOrbis has learned from trade and industry circles.
Most Indian sellers have kept prices unchanged at $170-175/mt CFR, despite only one deal being reported over the past week, as buying from distant markets like the EU and the Middle East failed to gain momentum as expected by local pellet producers, the sources said.
Trade circles in India said that steel mills in China are heard to be continuing to increase plant utilization levels, but any positive impact on raw material demand has been tempered by fresh waves of Covid-19 keeping buyers on the sidelines.
At the same time, Indian pellet producers have continued to maintain a positive outlook, anticipating that the shortfall in demand in China will be offset by increased buying from the Middle East and the EU and hence are keeping their prices unchanged for now.
“We do not see much downside risk to current prices even though buying from a traditional destination like China is low. Overall, the market remains in short supply and hence sellers will maintain prices with minor fluctuations,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
The sole deal heard during the week was concluded by an Odisha-based pellet producing arm of an integrated steel mill for about 20,000 mt for May shipment at $170-172/mt CFR China, market sources said.