Indian pellet exporters attempted to nudge up prices reacting to rise in merchant price of fines in the local market, but lacked support as buyers in China continued to remain cautious on soft demand and price of finished steel, SteelOrbis learned from trade and industry circles on Friday, September 16.
Ex-India pellet prices were pushed up marginally by $5-6/mt to the range of $107-110/mt CFR, but negative buying sentiments were aggravated by bad weather conditions, Covid-19 impact and soften finished steel prices in China leading to drop in successful trades.
According to trade circles, a pellet producing arm of an Odisha based steel mill reported a trade for 25,000 mt at $109/mt CFR China for end October delivery.
“Ex-India pellet prices are being nudged up despite drop in trades largely on back of rise in price and trade volumes in the local market,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“In central region local pellet price increased INR 300/mt ($4/mt) to around INR 9,000/mt ($113/mt) ex-works. Monthly local trade volume is averaging around 500,000 mt which is 10-15 percent higher than monthly average in previous year. This is supporting sellers to increase export price despite fall in deals overseas,” he said.
According to another Odisha based producer, local price is unlikely to face downside risks as merchant miners are increasing price of fines and domestic steel mills have started increasing finished steel prices and hence pressures to conclude overseas sales at lower price has eased.