With Indian pellet export prices reaching record highs it can’t be denied that the miners here would ignore an undergirded possibility of reaping the benefits from the boom.
Pellet export prices from India have climbed to almost 38 months high in the recent tender conducted by one of the large manufactures.
According to market participants report to SteelMint, the last highest bid received was at around USD 121.5/MT, CFR China which is equivalent to USD 112-113/MT, FoB India.
This is higher by USD 7-8 against SteelMint’s last week assessment of Indian pellet export prices of USD 114-115/MT, CFR China.
In the month of Sep an increase of 8% is seen in NMDC (CG) Baila Lump Fe 65% (6-40 MM), whereas domestic pellet offers also grew simultaneously by 5% in the state capital Raipur. It is to be noted that for the past three months the central India’s pellet market has seen the rise in monthly average prices of pellet.
The data maintained with SteelMint suggest that he past price trend for the interchangeable feeders support the parallel increase in its offers.
However given the tight situation in Odisha due to rain affected logistics the fortune may elude the producers in the state for a time being.
An official at one of the major Odisha miners explained, “we are running short of stocks for the previous deliveries due to flood like situation and water logging in mines, at this moment Odisha miners are unlikely to think of raising lump prices,” however “by the festival season of ‘Puja’ or ‘Diwali’ some upward movement can be anticipated”, he added.
As of now the Indian pellet makers are making the most out the Chinese demand for the high grade material, which seems to last for a while looking at the different pollution control measures the country has taken recently.
The question arises then is the next turn for iron ore producers awaited to play their card or will it be counting the chickens before they hatch?
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