India’s pellet (Fe 64%, 3% Al) export index (FOB east coast) has fallen marginally by $3/t to $163/t compared to $166/t on 29 Jan’22. The pellet export market remained silent after witnessing active trades last week in the absence of bids from China during the prevailing CNY holidays.
Rationale:
- No deal was reported this week for Fe 63% pellets under T1 and hence the weightage given was 0%.
- Three (03) indicative offers and bids were received, and two (02) were considered for calculation of the index, given a weightage of 100%.
The benchmark Fe 62% fines index fell by $6/t on 31 Dec to $141.75/t CFR China as buyers retreated in preparation for the Lunar New Year holidays. Seaborne liquidity wore thin as China-based buyers remained away from the market resulting in lacklustre trading activity.
China’s state planner National Development and Reform Commission (NDRC) has expressed concern about the abnormal price fluctuations in the iron ore market and will conduct in-depth investigations, strengthen supervision and crack down on illegal activities such as as price gouging and malicious speculation to keep prices in check.
The market is silent this week. However, prices might turn bullish after the CNY holidays, a trader source said.
“We are not offering this week as there are no cargoes for Feb laycan available currently. We will resume offers, post Lunar New Year holidays”, an eastern India-based source said.
Port inventories in China increase w-o-w – Pellet inventory at China’s major ports was recorded at 4.05 mnt this week against 4.45 mnt a week ago.
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