- Limited export offers floated from India
- Higher pellet premium supports export prices
The Indian pellet export market remained firm this week as limited offers from exporters and steady buying interest kept prices supported. Market participants reported that a deal of around 75,000 t of 62.5% Fe pellets was concluded recently at $ 119-120/t CFR China, reflecting a rise in the price trend despite cautious sentiment in the seaborne market.
Price update
BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index rose by $4/tonne (t) w-o-w to $108.5/t FOB east coast on 29 October against 24 October. Pellet prices were firm amid higher premiums for Indian material.
An India-based pellet-maker recently concluded an export deal for 75,000 t of pellets (Fe 62.5%). The export deal was heard at $119-120/t CFR China for November loading.
Market movements
According to market participants, export inquiries have slowed over the past week, with only a few producers actively offering material to overseas buyers. “Only a handful of plants are offering in the export market right now. Many exporters are waiting for the clarity on previously finalized cargoes, which are yet to be sold in the Chinese market,” commented one eastern India–based exporter. The market expects that once these cargoes are placed, a clearer picture will emerge regarding demand and pricing trends.
Another producer added that the recent concluded deal has lent firm support to export prices. “The sentiment remains steady as the supply side is tight. A few traders are inquiring for Indian cargoes, but offers are very limited”
One prominent Indian pellet supplier mentioned that they are currently focused on meeting domestic commitments and are not active in the export market. This has further contributed to the limited supply available for export.
An international trader mentioned that recent deals as grabbed decent prices amid the higher pellet premium. The current pellet premium is $10/DMT which is higher than normal days further supporting Indian pellet export market.
Domestic vs export market gap narrows
Domestic prices exceeded export offers by around INR 600/t ($7/t) despite the rise in export prices. Pellet (Fe63%) prices in Odisha’s Barbil were recorded at INR 8,150/t ($92/t) exw, remained stable compared to last weekend. Meanwhile, the ex-plant realisation in exports from Barbil was firm w-o-w at INR 7,550/t ($86/t) exw.
Rationale
- One (1) confirmed deals from India’s east coast were recorded in this publishing window for T1 trade. Thus, this category was taken into consideration for today’s price calculations and accorded 50% weightage in the index calculation. Click here for the detailed methodology.
- Ten (10) indicative prices were received, and five (5) were considered for the calculation of the index and given 50% weightage.
Factors impacting pellet exports
Chinese iron ore fines prices up w-o-w: The benchmark iron ore fines index rose $2/t w-o-w at $107/t CFR China on 28 October. Prices were firm as buying activity picked up slightly in the secondary market. The modest rise signals a brief recovery in sentiment, though fundamentals remain weak. As per reports, prices are expected to stay under pressure, with limited scope for sustained gains as demand concerns and supply adjustments continue to weigh on overall outlook.
DCE iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for the Jan 2026 contract closed at RMB 789/t ($111/t) on 29 October, up RMB 11.5/t d-o-d.
Outlook
According to BigMint analysis, pellet export prices may remain volatile in the near term, with a few deals likely to be concluded depending on freight movements and Chinese demand trends.
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