SteelMint’s weekly pellet export index (FOB east coast India) for Fe 64% grade has increased by $4/t w-o-w to $181/t. Few market sources indicated that iron ore fines buying interest has seen a recovery with potential easing of restrictions announced yesterday which pushed up fines offer. Thus, not aggressive buying interest for pellets was seen so far this week.
One pellet export deal for 55,000t (Fe 63%) was concluded recently by a West Bengal based pellet maker at around $207/t CFR China for end Apr loading.
“Export bookings have slightly slowed down due to logistics constraints. Pellet makers are finding it tough to hold their laycans so not many deals are getting concluded. Hence there are very few offers seen in the market. ” , highlighted a trader.
In addition to it, vessel freight rates for 50,000-55,000t export vessels from east coast India (Paradip) to China has increased further by $2 to around $25/t due less availability of vessel.
Rationale: One pellet export deal was concluded in this publishing window. Hence only one deal was taken into consideration for price calculation as T1 inputs and given a weightage of 50%. Another deal was not confirmed from the seller or buyer at the time of publication which was concluded few days back for one shipment at $205/t CFR China.
Apart from trades, SteelMint has also received Ten (10) indicative prices, offers and bids (T2). Out of which seven (7) were considered as T2 trades and given a weightage of 50% in this index.
- Spot iron ore fines price increase by $2/t- Spot iron ore fines Fe 62% price increased to close at $166.3/t as against $ 164.7/t a day before.
- Pellet inventories at Chinese ports increases marginally – Pellet inventory at major Chinese ports have increased by 0.1 mn t to 5.6 mn t last week against 5.5 mn t a week before as per data maintained by SteelHome. On a monthly basis, inventories status has remained largely stable.
Few market insiders cited a pick-up in domestic pellet trades this week which may result in a hike in domestic offers in the near short term. In addition to it, Odisha’s Essel Mining has today increased iron ore lump offers by INR 500/t, credible sources reported to SteelMint. Offer for lump (5-18 mm, Fe 62%) stands at INR 8,100/t (ex-mines, including Royalty, DMF & NMET). Tighter availability of iron ore lumps in Odisha merchant market has lifted up offers as few small merchant miners have exhausted their EC limits.
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