Ex-India iron ore pellet prices have continued to consolidate at higher levels despite the near absence of trading due to the holiday in China. Prices have risen amid the anticipation that mills will continue to increase use of pellets in blast furnaces to reduce coke utilization rates, SteelOrbis learned from trade and industry circles on Friday, October 8.
Indian pellet prices have increased by $5/mt over the past week to $170-185/mt CFR China even despite only nominal trading volumes.
An Odisha-based pellet plant of an integrated steel mill has reported a trade of 20,000 mt at $180-185/mt CFR of high grade pellets with alumina content less than two percent, for December delivery to a Singapore-based trading firm.
A pellet producing arm of Essel Mining is heard to have concluded a deal for 25,000 mt with a West Asian buyer at $175-180/mt CFR, sources said.
“Price are seeking higher levels amid two positives. Restocking is likely to become very strong from Chinese mills post-holidays. Secondly, reductions in coke charging rates will gain momentum from shortages and high prices, and blast furnaces will use more pellets, triggering higher demand, imports and prices,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Stability of iron ore prices in China despite low liquidity during the holidays is also a positive, indicating limited downside risks,” he added.