India’s pellets export trade has continued to face pressure since last week with limited inquiries. SteelMint’s India pellets (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $105/t, inched down by $1/t w-o-w. High port-side inventory of pellets and lesser firm bids in the market have kept Indian pellets export market quiet.
Rationale
- No deal was reported so far this week, hence, not taken into price calculation under T1 trade and given 0% weightage in index calculation. Click here for methodology.
- Nine (9) indicative offers and bids were received out of which six (6) were considered for calculation of the index and given 100% weightage.
Market highlights
- Domestic realisations higher than exports: As per SteelMint’s analysis, domestic pellets (Fe 63%, 3% Al) offers are at INR 8,000/t ($97/t) loaded on to wagon for Barbil, eastern India. On the other hand, SteelMint’s pellets export prices ex-plant for the Barbil region are assessed at around INR 6,800-6,900/t ($82-84/t).
- Global iron ore prices up: The benchmark Fe 62% fines index inched up by $0.60/t w-o-w on 13 December to $110.30/t CFR China as against $101.25/t a week ago. The spot prices of iron ore in China remained stable w-o-w amid constant market fundamentals.
- DCE iron ore futures up w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for May contract closed on 14 December, 2022 (at 3 pm) at RMB 808.5/t, up RMB 18.5/t ($3/t) as against RMB 790/t on 8 December, 2022. However, prices remained stable d-o-d.
- Port inventories in China remain on higher side: Pellets inventory at China’s major ports stood at 5.3 mnt this week against 5.6 mnt a week ago.
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