- Domestic realisations remain higher
- Wide bid-offer disparities prevent deals
India’s pellet export prices remained largely firm over the past week, with seaborne market activity staying muted. Most major producers who were once active in the export segment have shifted their focus towards domestic sales due to stronger realisations and widening bid-offer gaps in the international market.
Price update
BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index (FOB east coast) remained stable at $97/t on 3 September 2025 against 27 August.
Pellet exporters quoted offers of over $125/t CFR for deals to China, which were much higher than prevailing bids. Some bids were heard at $110/t CFR China, which was not viable for Indian exporters.
Market commentary
A pellet supplier noted, “Currently, a minimum of $125/t CFR China is required for us to sell in the seaborne market, which is quite far from the prices at which deals are being closed. With such a wide gap, we are not even considering current bids.” This sentiment reflects the mismatch between buyers’ expectations and producers’ targets. Higher domestic raw material costs also pushed producers to keep a firm stance.
According to sources, a few plants were operating on a conversion basis to sustain operations, while the majority were prioritising domestic supply. The Indian domestic market continued to offer better returns compared to the export market, further driving this shift.
A market participant added, “The domestic market is providing higher realisations right now, so producers are naturally preferring to place their material locally.”
Meanwhile, international iron ore price fluctuations added further uncertainty to pellet export prospects. Pellet players expect price volatility to persist in the near term, making export sales less attractive compared to stable domestic demand.
Domestic v/s export realisations gap
Domestic prices exceeded export offers by around INR 1,750/t ($19/t), largely stable w-o-w. Pellet (Fe 63%) prices in Odisha’s Barbil were recorded at INR 8,350/t ($95/t) exw, rising by INR 100/t w-o-w. Meanwhile, the ex-plant realisations in exports from Barbil were at INR 6,600/t ($75/t) exw.
Rationale
- No confirmed deals 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.
- Twelve (12) indicative prices were received, and nine (9) were considered for the calculation of the index and given 100% weightage.
Factors impacting pellet exports
Chinese iron ore fines prices remain stable w-o-w: The benchmark iron ore fines index remained largely stable w-o-w at $103/t CFR China on 2 September. Prices remained supported by restocking expectations ahead of Golden Week and an anticipated demand pick-up once mills resume operations. Trades are expected to increase in the latter half of the week once the military parade concludes.
DCE iron ore futures hold firm w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2026 contract opened at RMB 777/t ($109/t) on 3 September, steady w-o-w.
Outlook
BigMint’s analysis indicates that, due to the ongoing bid-offer disparity and persistent cost pressures, Indian pellet producers are likely to remain cautious about exports and continue prioritising the domestic market in the upcoming weeks.
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