Indian iron ore pellet export prices have increased marginally in the past week although the pace of the uptrend has eased compared to the previous week as buyers reduced purchased volumes.
According to the traders, while the outlook has continued to remain positive, the export market has been taking a pause as prices had moved up too fast earlier in the month and Chinese steel mills and traders were cautious in booking higher volumes.
Market sources said that ex-India iron ore pellet prices range at $112-114/mt CFR compared to high-volume trades concluded in the previous week in the range of $111-113/mt CFR.
Godavari Power and Ispat Limited (GPIL) concluded a contract for 20,000 mt for July at $112/mt CFR with a trader and the price was at the lower end of the range as the tonnage was for a grade with alumina content slightly higher than three percent.
An Odisha-based trader similarly concluded a deal for a modest volume estimated at 25,000 mt to China at $111.50/mt CFR.
Brahmani River Pellets Limited (BRPL) has seen its average trade volume fall compared to the previous week, concluding a deal for 25,000 mt during the past week at the higher end of the range at $114/mt CFR China for high grade pellets with alumina content of less than two percent, the sources added.
“There is stability in the market as far as ex-India pellet prices are concerned. Buyers are getting cautious after the surge in prices seen early in the month,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“However, I do not think there is a big downside risk to prices. Chinese steel mills can be expected to keep increasing their plant capacity utilizations over the next quarter, thereby ensuring steady raw material imports. Also, with steel mills in the EU region restarting, the diversion of pellets from Europe to China seen to be putting pressure on prices in recent weeks will also ease,” he added.