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.