Indian iron ore pellet export prices have continued to seek higher levels during the past week as producers were factoring in rising fines prices in the local market, but trading activity remained largely silent as full business activity is yet to gather steam in China after the long holidays.
Producers and market sources told SteelOrbis that export prices have edged up by an average of $2/mt to the range of $131-135/mt CFR China, as Odisha-based merchant miners were seen to be increasing iron ore prices, leveraging the forecast of a shortage of raw materials emerging in the current quarter.
However, the buoyant sentiments among exporters have been dampened by the lack of business activity owing to the Golden Week and National Day holidays in China, with the market seeing only the stray presence of Singapore-based traders.
But the rising futures market for raw materials and increases in iron ore concentrate prices are expected to offer support to higher ex-India pellet prices, indicating a bullish outlook once Chinese buyers resume activity in full, sources said.
Essel Group concluded a December supply contract for an estimated volume of 40,000 mt with a buyer in Singapore at the highest end of the range at $135/mt CFR for high grade pellet of alumina content less than two percent.
Godavari Ispat and Power Limited (GIPL) reportedly concluded a trade for an estimated volume of 30,000 mt for December delivery at $131-133/mt CFR with a Shanghai-based trading firm, the sources said.