Ex-India iron ore pellet prices have staged a smart recovery over the past week with the return of Chinese buyers to the market and, even though trades concluded by the latter remained on the lower side, prices have been finding support from strong optimism over demand and the price outlook for finished steel, SteelOrbis has learned from trade and industry circles on Friday, February 19.
The sources said that, while restocking is still to gain momentum after the resumption of business activity post-Chinese holiday, ex-India pellet prices have gained on the back of support from sentiment amid increasing iron ore fines and concentrates prices, while bullish sentiments for finished steel has been spreading to the raw materials market.
Sources said that Indian iron ore pellet prices have firmed by up $190-195/mt CFR China, up from $180-184/mt CFR a week ago, even though the number of trades has remained limited, but most market participants are expecting buying to become more robust as reflected in rising fines and concentrate prices in China.
“The outlook is very positive and robust. Iron ore fines and concentrate prices are already up in China. And it’s only a matter of time before pellet prices increase furher as business moves on full steam and Indian exporters are already pushing up offers,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
Market sources said that Brahmani River Pellets Limited (BRPL) is reported to have concluded a trade of an estimated tonnage of 30,000 mt of pellet with 63 percent Fe at $190-192/mt CFR.
A pellet-producing affiliate of Godavari Ispat and Power Limited (GPIL) has reported a trade of 35,000 mt at $190/mt CFR.