Ex-India pellet prices continued to record gains consolidating above the $200/mt CFR mark even though market witnessed decline in trading activity with mills reportedly completing current round of restocking ahead of holidays in China, SteelOrbis learned from trade and industry circles on Friday, January 28.
Sources said that ex-India pellet prices moved up to $200-212/mt CFR, compared to $190-198/mt CFR a week ago and unlike earlier weeks no discounts were heard from any of the large volume bookings received by exporters.
“There has been slight weakening of demand but this is largely because mills in China have almost completed pre-holiday restocking. It is unlikely to impact uptrend in prices and upward movement will sustain after holidays in China with pellet price tracking rise in price of high grade fines and lumps,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“Availability of high grade iron ore is reported to be tight in China. Also blast furnace operators are expected to increase usage of concentrates and pellets to achieve optimal efficiencies of blast furnace as the push for incremental output in summer months,” he said.
A leading Odisha based pellet producer reported a trade for 55,000 mt for March delivery at price of $198-205/mt CFR.
Brahmani River Pellets Limited was heard to have concluded a March delivery deal for 40,000 mt at price of $212/mt CFR for high grade pellet with alumina content less than 2 percent, sources said.
A pellet producing arm of Godavari Ispat and Power Limited reported a trade for 30,000 mt at price of $200-205/mt CFR, the sources added.