Indian iron ore pellet export offers have increased further, but very few deals have been concluded during the past week in view of the Chinese New Year holiday even though local producers are getting ready to push up offers further once business activity resumes, SteelOrbis was informed on Friday, January 24.
A deal reported during the past week was for a 30,000 mt cargo for March delivery for high grade pellets with alumina content lower than two percent at around $121.50/mt CFR China by the Reshmi Group, which was slightly higher than a deal concluded by the company in the previous week at $120/mt CFR China.
The sources said that, while in the previous week early February deliveries were commanding a higher price, now the indications are that even March deliveries will trend at higher prices in view of high demand from local steel mills for pellets, as the mills are facing tight supplies of high grade lumps from local merchant miners.
According to the sources, with local pellet prices averaging higher than $120/mt at around $122-123/mt, local producers will attempt to push up export offers to $124-125/mt CFR China once importing steel mills recommence raw material restocking after the holidays.
“Producers will continue to push up offers riding on high demand for pellets by local steel mills and tight supplies. The only risks to the upside potential of Indian export offers will be the uncertainty of how sintering restrictions on Chinese steel mills will continue as the winter season draws to an end,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.