- Indian cargo fetching more premium
- Strong trade sentiments keep offers higher
The Indian pellet export market remained supported this week, with active deals concluded at decent premiums, boosting sentiment among both suppliers and buyers. Market participants noted that the deals provided much-needed confidence to exporters, encouraging higher bids from buyers.
Price update
BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index (FOB east coast) climbed up by $2/t w-o-w to $105/t on 17 September 2025 against 10 September. A few export deals were concluded in the overseas market by Indian suppliers.
An eastern Indian manufacturer concluded an export deal for 75,000 t of pellets (Fe 62+%, 3% Al2O3) last week. The deal was heard concluded at $118-120/t CFR China, as per sources. Sources informed that the shipment was booked at a decent premium over global fines indices with October
A few more pellet export deals were heard in the market for September-end-early October loading as sources confirmed. However, the deals quantity and prices are yet to be confirmed with the transacted parties.
Market updates
Chinese buyers are actively inquiring about Indian cargoes for October loading, with 2-3 major suppliers currently driving the bulk of export activity. This selective participation has helped maintain premiums at elevated levels, with international traders reporting that the latest cargoes fetched strong returns for sellers.
An international trader said, “Some of these cargoes received good premiums from buyers’ end, and Chinese mills are also actively looking for Indian pellet feedstock.”
However, not all suppliers are equally aggressive in the export market. One major producer said, “We heard some deals in the market, but we are currently focused on domestic sales.”
Another supplier added that while they were making some coastal shipments at similar CFR prices, they are prioritising domestic commitments before releasing material for overseas markets.
Meanwhile, export duty speculation continues to influence trading dynamics. According to a source, “Due to the export duty rumours on iron ore fines, panic selling and buying continue in the market, and this is also reflecting in pellet exports.”
Despite this uncertainty, the overall outlook for the pellet export market remains firm. Buyers’ active inquiries, supported by recent deals and strong demand from China are expected to keep prices supportive in the near term. Market participants anticipate that additional cargoes may be offered in the coming weeks, once domestic demand is met, ensuring continued optimism in the export market.
Domestic vs. export realisations
Domestic prices exceeded export offers by around INR 1,100/t ($15/t), narrowing by INR 200/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 7,250/t ($82.5/t) exw, rising INR 200/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. Click here for the detailed methodology.
- Thirteen (13) indicative prices were received, and eleven (11) were considered for the calculation of the index and given 100% weightage.
Factors impacting pellet exports
Chinese iron ore fines prices down w-o-w: The benchmark iron ore fines index fell by $2/t w-o-w at $106/t CFR China on 16 September. The drop was mainly due to more low-Fe cargoes hitting Chinese ports, pressuring sentiment despite decent trading. Some mills are blending high- and low-grade fines, but tight margins capped gains. Demand for direct feedstock stayed resilient as mills sought its cost-effectiveness over pricier high-Fe cargoes.
DCE iron ore futures firm: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2026 contract opened at RMB 804.5/t ($113/t) on 17 September, largely remained firm w-o-w.
Outlook
Pellet prices are expected to remain firm, with additional export deals likely to conclude in the near term. Higher premiums are inducing exporters to channel sales overseas.
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