SteelMint’s weekly pellet export index (FOB east coast India) stands at $187/t, up by $6/t w-o-w following decline in Chinese port inventory and improved demand from Chinese mills. In a confirmed trade reported, an eastern India based pellet maker has concluded 55,000 t pellet (Fe 63%, 3% Al) deal towards the beginning of this week at $195-196/t CFR for mid-Jan’21 laycan. A couple of more pellet makers have floated export offers so far this week, traders reported SteelMint.
Chinese market participants highlighted that imported pellet demand is still decent and is being preferred due to winters.
“Some pellet makers from eastern India are also looking to conclude export deals but their expectations are slightly higher than the current bids coming from China”, a trader commented during a conversation with SteelMint.
Rationale: One pellet export deal (T1) heard so far in this week. However, there was one pellet deal reported to have concluded last week.
One of the major pellet makers in eastern India concluded a deal for 55,000 t pellets (Fe 63%) at $196/t CFR China for Jan end laycan. This deal was considered as T1 deal and given weightage of 50%.
SteelMint has received seven indicative prices (T2) and all were taken into consideration with an average price of $187/t FOB India and given weightage of 50%.
- Spot iron ore fines price increased by $9/t – Chinese spot iron ore fines (Fe 62%) index increased by around $9/t on a weekly basis and stood at $167.95/t CFR China today against $158.9/t a week ago. After a week-long holiday, Chinese market resumed on 4th Jan’21, following which spot prices have increased by around $3.45/t in the last three days.
- Pellet inventories in Chinese ports decrease – Pellet inventory at major Chinese ports have decreased. Last week, pellet inventories decreased by around 0.4 mn t to 6.7 mn t against 7.1 mn t a week before as per data maintained by SteelHome. However, on a monthly basis, inventories have come down by 1.45 mn t against 8.15 mn t a month before.
- Domestic pellet prices in eastern India remain stable- Indicative prices from Barbil have 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. In a bulk deal reported last week, an eastern India based private steel mill has booked around 200,000 t pellets from the Odisha based plants, credible sources reported to SteelMint. The deal is heard to have been concluded at INR 11,850-12,100/t loaded to wagons.
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