SteelMint’s pellet index (FoB east cost India) has increased sharply by $6/t w-o-w to $106/t on Wednesday (i.e 05th Aug) amid hike in China spot iron ore prices for Fe 62% fines yesterday to $118/t, CFR China against $107/t, CFR China a week before.
However, Chinese buying interest is fewer for Indian pellets amid strong demand for fines. A couple of trade sources told SteelMint they had not received any firm bids so far this week for pellet from Chinese buyers.
Also, pellet inventory at major Chinese ports has been increased to 10.2 mn t at the end of last week against 9.5 mn t a week ago.
On the other hand, Indian pellet makers are also less active in exports owing to higher gains in the domestic market on tight availability.
South India-based pellet maker KIOCL has floated an e-tender for exporting 55,000t pellets this month. The tender will be held between today 05 Aug’20 to 06 Aug’20 at 14:00 hrs IST (on both days) among empanelled customers.
- No pellet export deal has been concluded so far this week with zero (0%) weightage assigned to the T1 category of inputs.
- SteelMint has received six indicative prices and offers in the publishing window. All the inputs were considered for price calculation as T2 inputs with an average price of $106/t.
- In the absence of deals, the average of T2 transaction was given a 100% weightage in today’s final price calculation. T1 includes confirmed deals while offers, bids, and indicative prices are included as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage each in price calculation for FOB price assessment.
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