SteelMint’s pellet index (FoB east coast India) has increased by $6/t w-o-w to $115/t on Wednesday (i.e 19th Aug) tracking bullish global iron ore price trend, including in India.
China spot iron ore fines (Fe 62%) prices hit an over six-year high yesterday at $127.6/t CFR China.
There were limited export offers from Indian pellet makers this week on robust domestic demand. One of the major pellet makers from Odisha has taken a maintenance shut down, SteelMint learnt from its trade channels.
Chinese buying interest was quite limited for Indian pellets at the increased offer prices as mills are mostly focusing on procuring low and medium grade iron ore fines.
Pellet inventory at major Chinese ports was at 10.5 mn t on Friday against 10.6 mn t a week ago as per Steelhome data.
Two deals were reported last week after Steelmint timestamp, hence not considered in last week’s price calculation.
Details are given in the chart below:
Source- SteelMint Research
In the absence of deals, the average of three T2 transactions was given a 100% weightage in today’s final price calculation. The T2 inputs included all offers and indicative prices with an average price of $115/t.
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