While large eastern India-based pellet producers have held offers unchanged, a few medium-scale producers around Chhattisgarh have tried to increase offers for low grade pellets, but have failed to attract any buying interest largely because Chinese steel mills were reported to be reluctant to increase bookings having already restocked for lower winter production levels, SteelOrbis has learned.
High grade iron ore pellets with alumina content less than two percent remained have stable at $110-115/mt CFR China. However, the exception was Jindal SAW Limited, which increased offers for high grade iron ore pellets by $2/mt to $112-117/mt CFR China, but no transactions at this level could be confirmed in the market.
According to the sources, Brahamani River Pellets Limited (BRPL) reportedly concluded an export contract for estimated 30,000 mt for high grade iron ore pellets at $112/mt CFR China.
Iron ore pellets of lower grade with alumina content higher than two percent were also maintained at $103-105/mt CFR China. However, the sources said a few Chhattisgarh-based producers attempted to increase offers of low grade iron ore pellets to $105-107/mt CFR China to offset transportation costs from their landlocked production location to the nearest eastern Indian ports, but there were no reports of any deals being concluded at higher levels.
Sources said that state-run KIOCL Limited reportedly concluded an export tender for 50,000 mt for late January delivery with buyers in the Gulf region, though neither the identity of the buyer nor the price were disclosed by the company.
“Indian pellet offers are holding the price line largely because of expectations of increased demand once Chinese steel mills resume optimal production after winter season restrictions end. Most Chinese steel mills have completed restocking for the present and are relying on port stocks for comparatively lower volume requirements,” a member of the Pellet Manufacturers’ Association of India (PMAI) said. “As of now Indian pellet offers can be expected to remain range-bound,” he added.