India: Pellet import bookings gain momentum following global price drop

• Active bookings heard by mills in western, southern India
• India’s pellet imports recorded at 0.3 mnt in Q1CY’25

Indian mills have increasingly turned to pellet suppliers in the Middle East and North Africa (MENA) region following global price drop and tightening domestic availability.

A source from the Middle East said, “Iranian pellets (for Fe 65% grade) are being offered to India at $89-90/t FOB Bandar Abbas Port. Indian demand has been quite strong in recent weeks.” India’s pellet imports were recorded at 0.3 mnt in January-March of this year.

Pellet import deals

• Chennai: Recently, Chennai- and Andhra Pradesh-based mills booked around four cargoes (total 120,000 t) of pellets from the MENA region at around $115-120/t CFR India. The Chennai market has particularly leaned toward imports due to limited local supply. A source informed, “Odisha-based suppliers are diverting most of their material to Hyderabad and offers from Bellary pellet makers have turned limited due to tight availability of iron ore with miners yet to offer material owing to fiscal year end.”
• Karnataka: In another deal, a Karnataka-based buyer booked 55,000 t of imported Fe 65% pellets at around $120/t CFR Krishnapatnam from Middle Eastern suppliers. In Bellary, ongoing iron ore shortages and increased captive consumption have constrained pellet supply, forcing buyers to seek alternatives. Fe65% pellets are being offered by suppliers in the MENA region while major domestic suppliers usually offer Fe62.5- 63% material.
• Gujarat: Gujarat-based steel mills have ramped up iron ore pellet imports. Maintenance shutdown of Jindal SAW’s plant and competitive offers from the global market encouraged mills to import from the MENA region. Domestic pellet (Fe63%) prices in Kandla were recorded at INR 10,800/t ($127/t) DAP Kandla in April, while Bellary assessment was at INR 10,825/t ($127/t) exw, which indicates that domestic prices are higher than imports. The recent import deals were concluded at a price range of $110-120/t CNF Kandla, with material being Fe 65+% with low alumina (max 1%), sources told BigMint. Global iron ore prices have declined by $10/t since February on global trade tensions and subdued steel demand.

A Kandla-based buyer commented: “Central and eastern Indian suppliers have raised their offers significantly. In March, we booked a low-phos Fe 65% cargo at INR 12,700/t ($149/t) CFR Kandla from the central-eastern region. That is way higher than current MENA imports. So we are sticking with imports for now.”

• Goa: Operational disruptions in western India has further spurred import interest. Some local plants have been offline since early April, prompting regional steelmakers to look overseas. A few sources claimed that a Goa-based steelmaker booked a Supramax pellet cargo at $115/t CFR.

Outlook

The sustained gap between domestic and international prices, coupled with regional supply issues, suggests Indian import appetite for high-grade material may remain firm in the near term.