Indian pellet export index up by $5/t in recent deals

SteelMint’s weekly pellet export index (FOB east coast India) has increased by $5/t w-o-w to $192/t. Six pellet export deals were concluded from India in a week’s time, according to reports gathered by SteelMint.

Recent deals :

• India’s state-owned pellet maker – Kudremukh iron ore company Ltd (KIOCL) has concluded pellet (Fe 64%, less than 2% Al) export deals at around $208/dmt, FoB India. KIOCL’s pellet export prices have moved up by around $25/t against its last tender concluded in mid-Dec’20.
• In another confirmed trade heard, a trader has concluded pellet (Fe 63%, 3% Al) two export deals recently at $203-205/t CFR China for mid-Jan’21/early Feb laycan.
• Another Odisha based pellet maker has concluded an export deal for a non-Chinese destination.

“Some pellet makers from eastern India are also looking to conclude export deals above the market offer and their expectations are slightly higher by $3-4/t “, a trader commented during a conversation with SteelMint.

Chinese market participants highlighted that imported pellet demand is still decent and is being preferred due to winters.

Rationale: Two pellet export deals (T1) were heard so far this week. Others were not taken into consideration considering they being of non-Chinese destinations and different port of loading.T1 was given a weightage of 50%.

SteelMint has received eight indicative prices and offers (T2) and only six were taken into consideration with an average price of $191/t FOB India and given weightage of 50%.

• Spot iron ore fines price decreased by $2/t – Chinese spot iron ore fines (Fe 62%) index decreased by around $2.35/t on a daily basis today and stood at $169/t CFR China against $171.35/t yesterday. However, on a weekly basis prices are up by $1/t against last week.
• Pellet inventories in Chinese ports decrease – Pellet inventory at major Chinese ports have decreased. Last week, pellet inventories decreased by around 0.5 mn t to 6.2 mn t against 6.7 mn t a week before as per data maintained by SteelHome. However, on a monthly basis, inventories have come down by 0.8 mn t against 7 mn t a month before.
  
• Domestic pellet prices in eastern India continue to remain stable- Indicative prices from Barbil have remained stable in the domestic market this week so far. SteelMint’s pellet price assessment from Barbil (Odisha) at INR 11,900-12,000/t (loaded to wagon) this week. However, some of the deals from Barbil heard to be concluded at 11,800-12,000/t (Loaded) this week.