Indian iron ore pellet export activity has cooled down over the past week amid a softening of demand and of prices of fines and concentrates in China, while the marginal downward adjustment of ex-India prices was below buyers’ expectations, leading to sparse trades, SteelOrbis learned from trade and industry circles on Friday, July 23.
Sources said that ex-India pellet prices are down $10/mt on average to levels of $250-270/mt CFR China, and buyers are heard to be bidding below the $250/mt CFR mark, but the high prices of fines in the local market have held sellers back from resorting to sharper adjustments in order to push for sales.
According to sources, the landed prices of ex-Australia and ex-Brazil fines and concentrates showed a declining trend in China and sentiments are depressed over a possible sharp fall in steel output in the second half of the year, with a resultant drop in the pace of raw material restocking.
“ In view of local fines prices being at an historical high, it is more viable for pellet producers to take a pause in the export market when realizations are falling, and to wait for a rebound,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“A short-term lowering of plant output is also being resorted to as there are no buyers in the local market at prices above the $200/mt mark,” he added.
Among the stray deals heard was a reported supply contract for 30,000 mt by Godavari Ispat and Power Limited (GIPL) at a price of around $250-260/mt CFR sources said.