Indian iron ore pellet export offers have remained at higher levels during the past week, but the number of trades has been limited in view of the long holidays across the country for harvest festivals, although producers are getting ready to increase offers as they start booking for end-of-March and April deliveries, SteelOrbis learned on Friday, January 17.
Market sources said that export offers have remained steady in the range of $117-118/mt CFR China for pellets with alumina content lower than two percent, with most deals concluded during the past week at higher end of the range.
The sources said that pellets for end-of-February shipment continued to fetch a premium with at least one deal by Reshmi group for 20,000 mt reportedly concluded at $120/mt CFR China.
Brahmani River Pellets Limited (BRPL) concluded a deal for 40,000 mt at $118/mt CFR China for March delivery. Overall trading activity was quite as participants were away on holidays for most part of the past week, the sources added.
“Indian producers will try testing offer levels of $120-123/mt CFR China once more players return to the market over the next few days. Buying demand is expected to remain strong as reports indicate that sintering restrictions on steel mills in a number of regions in China are expected to continue longer than usual for pollution control, prompting steel mills to continue restock pellets,” a manager at an eastern India-based pellet producer said.
However, some sources said that Indian offers are more likely to remain range-bound in view of the approaching Chinese Lunar New Year and buyers could be expected to reduce their market activity.