Ex-India pellet prices range-bound with negative bias

Friday, 19 November 2021 17:09:29 (GMT+3)   |   Kolkata
       

Ex-India iron ore pellet prices have been range-bound over the past week with a strong negative bias as low demand has been stemming from weak margins in finished steel prices in China and reports of several buyers reselling their cargoes in the secondary market, SteelOrbis learned from trade and industry circles on Friday, November 19.

Ex-India prices have languished in the range of $129-138/mt CFR compared to $130-140/mt CFR a week ago, with only stray low-volume deals reported in the market.

Pessimism over falling demand in China has been aggravated with reports that more blast furnaces are to go in for maintenance shut-downs during the winter months, which will further reduce aggregate demand for raw materials.

The sources said that, in view of oversupply of raw materials in China, there have been at least two confirmed reports of seaborne pellet cargoes sold by buyers in secondary markets impacting sentiments and keeping fresh bookings away in the local market.

A state-run pellet producer reported closing a large-volume export tender for 55,000 mt with a West Asian buyer, but the highest bid could not be ascertained in the market.

An Odisha-based pellet producer has reported a trade for 25,000 mt with a China-based buyer for January delivery at $130-135/mt CFR, the sources said.

“We hear iron ore pellet port stocks in China in the range of 4-5 million mt. This is considered to be on the higher side at a time when aggregate raw material demand during the winter months is expected to continue to fall. Hence, the absence of buyers in the local market,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.


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