- Active buying interest seen for Indian pellets
- Domestic-export realisation gap narrows
Indian pellet export prices remained firm this week, supported by steady buying interest and limited availability. Market confidence has been lifted by a series of export deals concluded over the past two weeks, which encouraged both buyers and sellers to stay engaged despite volatility in global steel markets.
Price update
BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index (FOB east coast) inched up by $1/t w-o-w to $106/t on 24 September 2025 against 17 September. No new export deals were concluded in this publishing window.
Some traders have floated offers but the deals are yet to be finalised.
Market updates
Exporters reported that inquiries for Indian pellets have been active, particularly from Chinese buyers, though the availability of cargo remains tight. A pellet producer said, “Most producers are focused on fulfilling their earlier shipments and meeting strong domestic demand, which has kept fresh offers scarce in the export market.”
According to a market participant, the recent export deals have helped ease pricing pressure, allowing producers to balance their commitments between overseas and domestic markets. Another exporter noted, “Domestic demand is supportive, and the earlier export deals have relieved some pressure on pricing, which is why producers are not rushing to release new offers.”
On the buying side, traders indicated that Chinese mills remain interested in Indian material. An exporter noted, “Buyers are still present at $118-120/t CFR China, but the lack of supplier offers has slowed deal-making.”
Another source highlighted that some trader cargoes are being floated in the market, though deals have not been finalized.
A buyer added, “A couple of shipment deals could emerge in the coming days, but overall, supply-side constraints may keep the market tight.”
Domestic vs. export realisations
Domestic prices exceeded export offers by around INR 1,000/t ($12/t), narrowing by INR 100/t w-o-w. Pellet (Fe 63%) prices in Odisha’s Barbil were recorded at INR 8,350/t ($95/t) exw, remaining stable w-o-w. Meanwhile, the ex-plant realisations in exports from Barbil were at INR 7,350/t ($83.5/t) exw, rising by INR 100/t w-o-w.
Rationale
- No confirmed deals of Fe63% from India’s east coast were recorded in this publishing window for T1 trade. Thus, this category was not taken into consideration for today’s price calculations and accorded 0% weightage in the index calculation.
- Thirteen (13) indicative prices were received, and seven (7) were considered for the calculation of the index and given 100% weightage.
Factors impacting pellet exports
Chinese iron ore fines prices stable w-o-w: The benchmark iron ore fines index remained largely stable w-o-w at $106/t CFR China on 23 September. The stability came even as some trades in medium-grade fines surfaced. Port prices stayed flat on thin liquidity, with mills waiting and watching. As per reports, restocking may pick up before the National Day break, but despite steady demand, both port and seaborne markets remain sluggish.
DCE iron ore futures firm: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2026 contract opened at RMB 803.5/t ($113/t) on 24 September, largely remained firm w-o-w.
Outlook
Pellet prices are expected to remain volatile in the near term, while a couple of shipments are likely to materialize in the coming days.
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