SteelMint’s pellet export index (FoB east coast India) has decreased by $4.5/t w-o-w to $110.5/t on Wednesday (i.e 26th Aug) due to a decline in Chinese bids and high inventory at Chinese ports.
Confirmed trade – An Odisha based pellet maker concluded a 55,000t pellet export deal for Fe 64% grade pellets with 3%, Al, to China at around $124-125/t CFR with an FoB equivalent of $111-112/t for Sept loading. This deal has been considered for price calculation and included as a T1 transaction.
SteelMint has received around four indicative prices and bids in this publishing window. All four were considered for price calculation as T2 inputs with an average price of $108.8/t.
Methodology – T1 includes confirmed deals while offers, bids, and indicative prices were included as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage each in price calculation for FOB price assessment.
Market overview – Chinese spot iron ore fines (Fe 62%) prices after hitting an over six-year high last week, have come down by around $7/t w-o-w and was assessed at $121.5/t CFR China yesterday.
Chinese buying interest was quite limited for Indian pellets this week however, India pellet makers are also less active in the export market as the domestic market is more lucrative than the export realization.
A pellet maker has floated an export tender and is eyeing for price levels of around $123/t, CFR China.
Pellet inventory at major Chinese ports increased last week to 10.9 mn t against 10.5 mn t a week ago as per Steelhome data.
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