Indian iron ore pellet exports prices have remained stable during the past week amid limited trades and differing assessments of outlook among buyers and sellers, SteelOrbis has learned on Friday, November 13.
Market sources said that ex-India pellet prices have been maintained at $133-135/mt CFR China with sellers looking at short-term upsides amid expectations of a harsh winter prompting stricter and widespread sintering restrictions on Chinese steel mills, rising prices of iron ore concentrate, lower stocks at Chinese ports, and rising merchant procurement prices of fines from local mines in India.
At least two private sector miners have said that they have increased iron ore fines prices for merchant sales by 7-10 percent over the last two months.
However, a number of buyers are waiting on the sidelines as the uptrend in pellet prices seen in the Chinese market early in the week has not been sustained, with prices falling back, and hence they have been cautious in accepting higher ex-India pellet prices, market sources said.
An associate company of Godavari Power and Ispat Limited (GPIL) has concluded a deal for high grade iron ore fines with alumina content less than two percent at a slight premium at $137-140/mt CFR China, for an estimated tonnage of 25,000 mt.
The sources said that Brahmani River Pellet Limited (BRPL) has reported a trade of 30,000 mt for February delivery at a price of around $133/mt CFR China.
A pellet-producing company of Essel Mining has reported a trade of around 30,000 mt at a price of around $135/mt CFR China, also for February delivery, the sources said.
“Despite cautious buying at present, local exporters are bullish that strong buying will resurface as the harsh forecast winter will ensure a wider spread of sintering restrictions on Chinese steel mills in more regions, triggering higher restocking of pellets, and mills will ensure higher levels production in view of strong finished steel demand and prices,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.