Domestic pellets prices in western India have come under pressure close on the heels of recent bookings made from West Bengal in eastern India to the western part of the country.
Sources informed SteelMint that a deal for one vessel of about 55,000 tonnes (t) of pellets was heard to have been recently concluded at a landed price of INR 10,500/t from West Bengal-based players to Gujarat. An additional amount of INR 500/t will be incurred as freight charges to the plant.
This transaction has exerted pressure on western India-based pellet manufacturers. Jindal SAW Ltd decreased its pellet offers by INR 1,000/t ($14/t) The current offer for Fe63% pellets stands at INR 11,500/t DAP Kandla, SteelMint learnt from sources.
A sharp fall in landed pellet offers in eastern India and imported iron ore lump prices — due to declining global iron ore prices — have resulted in a reduction in domestic offers by producers.
If sources are to be believed, Gujarat-based players are also in discussions for placing bookings for imported South African lumps. Few offers for South African lumps were heard at around $125/t, CNF Kandla. Market participants are still in talks, however. But they may soon conclude the lumps deals. Amid falling global iron ore fines Fe62% prices, which dropped to less than $100/t, CNF China last week, the imported South African iron ore lumps have become viable for imports.
A few iron ore import bookings into India were heard lately in the past 10 days, whipping up speculation as to whether more such deals could be in the offing. These deals have surfaced after a gap of around eight months with last import parcels seen in Jan’21, at 0.14 million tonnes (mn t) and at 64,000 tonnes in Dec’20. SteelMint learnt from reliable sources that two vessels of Kumba South African iron ore of Fe64.5%, have been booked, both by southern India-based companies. One vessel is of 55,000 tonnes while the other is of around 35,000 tonnes. Prices for both deals are hovering at $113-114/t CIF Krishnapatnam.
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