India: Pellet export index slips $3/t w-o-w amid weak buying interest

• Sellers hesitant to close deals amid unviable export tags
• China’s iron ore fines index dips by $4/t on weak margins

The Indian pellet export market softened this week as trading activity slowed. Notably, no fresh deals were heard. Prices were assessed at around $116.5/t CFR China, reflecting a correction amid muted buying interest and cautious sentiment in the seaborne market.

Price update

BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index fell by $3/tonne (t) w-o-w to $106/t FOB east coast on 5 November against 31 October. Pellet prices dipped, as the domestic market remained more attractive. Consequently, no fresh deals were heard in this window.

Market movements

The Indian pellet export index fell by $3/t w-o-w, tracking the decline in global iron ore fines (Fe 62%) prices, which slipped by $4/t w-o-w. According to market participants, export activity from India has slowed notably, with no new deals heard during the week, as sellers stayed cautious amid falling international prices.

A major eastern India-based exporter said, “Sellers are hesitant to make fresh bookings as prices keep softening. Hardly any offers are circulating in the export market right now.”

A central India-based trader added, “At current levels, export prices are less viable. Odisha prices have strengthened in the past few days, making domestic sales more attractive than exports.”

Meanwhile, a port-based producer pointed out that “only plants located near ports can still manage exports profitably at these prices, while most others remain focused on the domestic market.”

Domestic vs export market gap increases

Domestic prices exceeded export offers by around INR 800-900/t ($9-10/t), with the gap increasing w-o-w. Pellet (Fe63%) prices in Odisha’s Barbil were recorded at INR 8,600/t ($97/t) LTW, stable compared to last weekend. Meanwhile, the ex-plant realisation in exports from Barbil was firm w-o-w at INR 7,400/t ($83.5/t) exw.

Rationale

• No (0) confirmed deals from India’s east coast were recorded in this publishing window for T1 trade. Thus, this category was allotted zero % weightage for today’s price calculations. Click here for the detailed methodology.
• Ten (10) indicative prices were received, and six (6) were considered for the calculation of the index and given the balance 100% weightage.

Factors impacting pellet exports

Chinese iron ore fines prices dip w-o-w: The benchmark iron ore fines index fell $4/t w-o-w to $105/t CFR China on 4 November. Prices declined, as steel mills faced weak margins and lower earnings, while increased alternative supplies gave buyers greater choice. Sellers were forced to reduce offers to stay competitive, keeping sentiment subdued. Tangshan’s sintering curbs further dampened demand, pressuring prices amid already soft trading conditions.

DCE iron ore futures edge down w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2026 contract closed at RMB 776/t ($109/t) on 5 November, RMB 13/t ($2/t) down from last week.

Outlook