Indian iron ore pellet export prices have been maintained during the past week at around $131-135/mt CFR China, but trades have been limited by conflicting sentiments, SteelOrbis has learned on Friday, October 16.
Buyers have been unwilling to conclude higher tonnage deals in view of the softening of iron ore fines prices in China. But at the same time, local pellet exporters are unwilling to rush into export price adjustments immediately to push pellet volumes overseas, amid reports that winter restrictions on sintering at Chinese steel mills will support demand for pellets soon.
So even though the pellet export market has remained largely quiet, local Indian exporters have preferred to put bids on hold, anticipating prices will resume an uptrend and also for the local Indian currency to reverse its appreciating trend against the US dollar.
Market sources said that Jindal Steel and Power Limited (JSPL) has concluded a trade for an estimated tonnage of 40,000 mt for December delivery with Chinese buyers at $129-131/mt CFR.
An Essel Group company reportedly concluded a deal for a 35,000-40,000 mt trade with a Singapore-based trading firm at a price of $131-133/mt CFR, the sources said.
“Buyers and sellers have differing perceptions of the market. Iron ore fines price from Brazil and Australia are softening and buyers are anticipating lower demand for currently higher-priced pellets. But sellers feel that winter sintering restrictions will push up ex-India pellet prices by at least 2-5 percent in the short term. This has resulted in the market slipping into a wait-and-watch mode,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.