Ex-India pellet prices have sought lower levels in inactive market conditions caused by the lack of Chinese buyers due to the holiday, but the demand outlook is positive for when business activity resumes, SteelOrbis has learned from trade and industry sources on Monday, February 15.
The sources said that only stray limited-volume deals were concluded towards early last week, with buyers willing to conclude trades only if sellers concluded transactions at the lower end of price offers.
Sentiments in the near term are more optimistic amid the expected positive finished steel price trend after Chinese business activity resumes. Steel mills would be interested in raw material restocking after the long holiday, supporting Indian prices.
Sources said that pellet export prices have slipped to $180-184/mt CFR China, compared to $187-192/mt CFR a week ago.
“The level of restocking seen usually before Chinese holidays was missing this year, indicating demand weakness and uncertainty over the finished steel price cycle,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
Market sources said that an affiliate of Essel Mining has reported a trade for a modest volume of 30,000 mt of high grade pellet with alumina content less than two percent at $178-180/mt CFR.