SteelMint’s pellet export index (FoB east coast India) has increased marginally by $2/t w-o-w to $122/t on 07th Oct’20. However, market participants highlighted no firm trades to have concluded due to ongoing Chinese holidays.
Rationale: In absence of confirmed trades (T1), the entire weightage for index calculation has been transferred to T2 inputs.
SteelMint has received around four indicative prices (T2) and they have been taken into consideration with an average price of $122/t FOB India.
Spot iron ore fines price rebounded ahead Chinese holidays – Chinese spot iron ore fines (Fe 62%) price towards the closing of last week stood at $123.15/t CFR China as against $117/t CFR China towards the beginning of last week owing to restocking ahead of Chinese holidays.
Pellet inventory at major Chinese ports has increased around 0.4 mn t to 10.9 mn t last week against 10.5 mn t a week before as per Steelhome data.
Pellet trades pick up in domestic market – Domestic pellet market demand improved a bit after fall in prices in most of the region. On weekly basis, sponge prices have also increased around 1,000/t. SteelMint’s assessment for the domestic market in Barbil (Odisha) has come down to INR 7,500-7,700/t against last week assessment of INR 7,700-7,800/t (Loaded to wagon).
We are expecting Chinese sintering restrictions while approaching winters may boost pellet demand post-Chinese holidays.
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