Indian iron ore pellet export price softened amid limited trading activity as buyers largely stayed away from major bookings in view of slight improvements of port stocks in China, marginal fall in iron ore fines prices in the middle of the week and month-end considerations.
According to the traders, with volumes of arrivals at Chinese ports, buyers preferred not to rush into fresh contracts and preferring to await new pricing signals for ex-India pellets as several buyers claimed prices had risen too fast in too short a time but local exporters maintained that outlook was positive supported by strong demand revival and prices of finished steel in China which would trigger fresh round of raw material restocking.
Market sources said that with major booking absent in the market during the past week, ex-India pellet export prices edged lower to $112-114/mt CFR China compared to deals concluded at higher end of a range of $114-116/mt CFR in earlier weeks.
The sources said that Jindal Steel and Power Limited’s pellet plant concluded an export contract for 35,000 mt at $114/mt CFR.
Ardent Steel Limited, reportedly concluded a deal for estimated volume of 25,000 mt at $112/mt CFR, the sources said.
“There is some cautiousness among buyers as prices are too high. But medium terms outlook is still positive and local exporters are unlikely to revise export prices downward significantly,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“The rise in port stocks in China is not too significant and will level off as Chinese steel mills are still increasing production and it’s a matter of time that fresh raw material bookings kick in. The fall in trading activity in the local market and slight fall in prices is also because of month end considerations and buyers will wait for exporters to start submitting August prices to get back into the market,” he added.