Indian pellet export index rises, market awaits return of Chinese buyers

India’s pellet export index has risen backed by anticipation of strong Chinese buying after holidays end. SteelMint’s weekly pellet export index (FOB east coast India) for Fe 64% grade has increased by $2/t w-o-w to $184/t.

According to credible sources reported to SteelMint, two pellet deals have been concluded from India towards the end of last week from Eastern and Central India. Both the deals have been concluded for China, sources mentioned.

• One deal was concluded by Central India pellet maker for 55,000 t (Fe 63%, 3% Al) at $195/t CFR China for Mar’21 shipment.
• Another deal was done by a West Bengal base pellet maker for 55,000 t (Fe 63%, 4% Al) at $193-194/t CFR China for Mar’21 loading.

Most of the traders and buyers are waiting for Chinese market to open tomorrow after the long CNY holidays.

Rationale: Total two pellet export deals were concluded at the end of last week. However, they were not taken into consideration because both were concluded last week. ThereforeT1 inputs given 0% weightage in this index.

Apart from trades, SteelMint has also received eight (8) indicative prices, offers and bids (T2) and seven were taken into consideration with an average price of $184/t FOB India and given a weightage of 100%.

• Spot iron ore prices remain unchanged- Spot iron ore has been closed officially between 11th Feb till 17th Feb 2021 observing Chinese New Year holiday. They will resume on 18th Feb. Spot iron ore Fe 62% fines price remained unchanged at $165.95/t CFR China with Chinese market participants still away for the Lunar New Year holidays. Trade activities are expected to resume post-holidays.
• Freight rates increase – Freight rates for 50,000-55,000t export vessels from east coast India (Paradip) to China have increased by $4 w-o-w to $18.
• Domestic pellet prices in eastern stable- Indicative prices from Barbil remained stable in the domestic market. SteelMint’s pellet price assessment from Barbil at INR 11,000-11,400/t ($150-156/t, loaded to wagon) have remained unchanged against last week.