Indian iron ore pellet export prices have been maintained at higher levels in the past week, but trading interest has remained limited from both buyers and sellers, SteelOrbis has learned on Friday, November 6.
Export prices have been maintained at $133-135/mt CFR China even though at least one trade was reported at a lower level, reportedly as the seller was keen to liquidate higher stocks at port stockyards.
The local market has lapsed into uncertainties over exports, with speculations becoming rife over a possible ban on iron ore exports from India. Sources pointed out that steel mills were lobbying for a ban on iron ore exports from the country to dampen raw material costs for domestic steel producers, while the mining industry has been seeking a ban on pellet exports, with both risks impacting sentiments among local pellet producers.
Sentiments among buyers have also remained cautious with Chinese steel mills limiting raw material bookings, anticipating finished steel prices will soften in December, market participants said. They said that, despite stricter restrictions on sintering operations of Chinese steel mills in some regions, demand for pellets has not spiked as expected, largely owing to high stocks of iron ore at Chinese ports. The higher arrivals of iron ore fines at Chinese ports has limited demand for higher-priced pellets despite regional sintering restrictions, sources said.
They also added that Indian merchant miners were seeing a demand revival for exports of low grade iron ore fines to China and hence have been limiting their local merchant sales of iron ore fines for pelletization.
Brahmani River Pellets Limited (BRPL) has reportedly concluded a trade of around 30,000 mt at a price of around $130-133/mt CFR with a Shanghai-based trading firm, market sources said.
Jindal Steel and Power Limited (JSPL) has reported a trade for a limited volume of around 20,000 mt for January delivery at $135/mt CFR for high grade pellets with alumina content less than two percent, the sources added.