India: Pellet export index rises $2/t w-o-w despite muted trading activity

• Higher global iron ore fines prices support Indian pellet export prices
• Bid-offer gaps limit trade, China turns to competitive CIS, Brazilian supplies

India’s pellet export prices climbed up w-o-w on 22 April, supported by higher global iron ore fines prices. However, trading activity stayed muted, with no fresh deals concluded over the past few days as several pellet producers focused on lifting previously booked cargoes.

Prices and trade update

BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index rose by $2/t w-o-w to $103/t FOB east coast on 22 April. The market was quiet during this publishing window, with no export deals recorded in the sea market amid the cautious bids from the overseas buyers.

A pellet producer noted that last week’s export tender (50,000 t, 1.5-1.8% alumina, Fe 63%) received counter bids that were significantly lower than expectations, reflecting cautious procurement.  The pellet producer had floated a tender to export buyers, which is likely to close tomorrow.

Market updates

Market participants highlighted that exporters are currently assessing global sentiment before committing to new offers. Echoing this, a pellet producer stated that they are likely to float fresh export tenders next month to gauge buyer interest.

Sources indicated that while there is underlying demand for pellets, a clear gap persists between buyer expectations and sellers’ offers. Indian producers are currently quoting around $120/t CFR China for standard-grade pellets, but these levels have yet to attract firm buying interest from overseas customers.

According to an international trader, “Chinese steel mills are actively sourcing pellets from CIS and Brazilian suppliers, primarily due to the availability of higher-grade material at more competitive prices. This has intensified competition for Indian exporters, particularly in the premium segment.”

Additionally, while ongoing geopolitical tensions and the blockage of the Strait of Hormuz have impacted shipment flows from the Middle East, tightening global supply, Indian exporters have not yet been able to fully capitalise on the situation due to pricing mismatches.

In the domestic market, pellet prices fell moderately during the week, tracking a decline in iron ore fines prices. The recent Odisha Mining Corporation (OMC) auction saw bids fall by approximately INR 300/t, which has reduced input costs for pellet producers and, in turn, exerted downward pressure on domestic pellet prices.

Domestic vs export market

Export realisations (Fe 63%) were recorded at INR 7,500/t on 15 April, reflecting an improvement of INR 200/t ($2/t) w-o-w. In contrast, domestic realisations (Fe 62.5%) fell by INR 100/t w-o-w to INR 8,550/t exw. As a result, the spread between domestic and export prices stood at INR 1,050/t ($11/t), narrowing by INR 300/t w-o-w.

Rationale

• No confirmed deal from India’s east coast was recorded in this publishing window for T1 trade, and, therefore, this category was allotted 0% weightage for today’s price calculations. Click here for the detailed methodology.
• Thirteen (13) indicative prices were received, and nine (9) were considered for the calculation of the index and given a balance 100% weightage.

Factors impacting pellet exports

Chinese iron ore fines prices rise w-o-w: The benchmark iron ore fines Fe 61% index increased by $3/t w-o-w to $108/dmt CFR China on 21 April. Prices rose as eased import curbs on Australian ore lifted inquiries, while buyers increasingly avoided high-phosphorus fines. Import margins narrowed as discounts adjusted, though some advantage persisted. With margins tightening and port prices high, mills deferred purchases, waiting for a correction to restock.

DCE iron ore futures prices inch up w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract closed at RMB 786/t ($115/t) on 22 April, rising RMB 27/t ($4/t) w-o-w.

Vessel freights inch down w-o-w: Iron ore freights dropped by $0.7/dmt w-o-w to $14/dmt on 21 April. From India to China, Supramax rates on the Paradip-Qingdao route declined, as sentiment remained weak amid limited cargo activity and ample vessel availability.

Outlook

Pellet export prices are expected to remain volatile in the coming days. A clearer price direction is likely to emerge once new deals are finalised. This will provide stronger benchmarks for both buyers and sellers.