SteelMint’s India pellet (Fe 63%, 3% Al) export index FOB east coast was recorded at $111/t, falling by $12/t w-o-w amid a sharp drop in global iron ore prices at the start of this week. The index has fallen to over a two-month low, as per data maintained with SteelMint.
No deals were recorded in this publishing window as participants were waiting for profit margins to improve. However, looking at the current situation where coking coal as well as steel prices are falling, pellet export margins are expected to go down further.
India’s iron ore pellets export shipments were recorded at 115,000 t in the third week of March in comparison with 241,150 t in the second week, as per vessel line-up data maintained with SteelMint.
Rationale
- No deal was recorded in this week so far for price calculation under T1 trade and given 0% weightage in index calculation. Click here for methodology.
- Eight (8) indicative offers and bids were received, and five (5) were considered for calculation of the index, given 100% weightage.
Market highlights:
- Realisations of domestic pellets still better: Domestic pellets (Fe 63%, 3% Al) prices stood at INR 9,400-9,600/t loaded on to wagon for Barbil, eastern India. On the other hand, SteelMint’s pellets export prices ex-plant for the Barbil region stood at INR 7,100/t.
- Global iron ore prices decrease: The benchmark Fe 62% fines index moved down by $8.3/t w-o-w on 21 March to $124.7/t CFR China as against $133/t, a week ago. The price drop was largely because of the current global economic environment, which has affected market confidence.
- DCE iron ore futures slide w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for May 2023 contract closed at RMB 865.5 /t on 22 March (at 3 pm), down sharply by RMB 61/t ($9/t) against RMB 926.5/t on 15 March. Prices dropped by RMB 13.5/t ($2/t) d-o-d.
- Port inventories in China largely stable: Pellet inventory in China’s major ports stood at 6.65 mnt this week, largely stable against 6.6 mnt a week ago.
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