Indian pellet export price increases sharply on strong Chinese buying interest

SteelMint’s pellet index (FoB east cost India) increased by $7/t w-o-w to $106/t on Wednesday as buying interest picked up.

The previous assessment was done on 8 Jul at $99/t.

A strong buying interest from China and an increase in CFR China spot 62% fines prices, which was closed yesterday at 1-year high of $112.4/t, pushed pellet prices higher.

• An Odisha-based pellet maker concluded a 55,000t pellet export deal for Fe 64% grade pellet with 3% Al to China at around $118/t CFR with an FoB equivalent of $106/t for July loading. This deal has been considered for price calculation and included as a T1 transaction.
• SteelMint has received around six indicative prices and offers in the publishing window. Five inputs were considered for price calculation as T2 inputs with an average price of $106.5/t. One indicative price was not considered for price calculation as it was much lower than the average market level.
• T1 includes confirmed deals while offers, bids, and indicative prices are included as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage in price calculation for FOB price assessment.