SteelMint’s weekly pellet export index (FOB east coast India) has risen to $196/t, up by $4/t w-o-w. Indian pelllet export prices are trading at all-time high, as per the data maintained with SteelMint since CY’12.
One pellet export deal was confirmed from eastern India based player in this publishing window. There was a market chatter that a Central India based pellet maker concuded a deal at $208/t, CFR China. However it could not be confirmed till the time of publishing this report. Indian pellet exporters and traders are active in exports, considering inquiries in the domestic market falling amid declining sponge prices.
“Last week, the Supreme Court had sought replies from the Union government and as many as 61 iron ore pellet producers-cum-exporters on a PIL seeking a probe on duty evasion in exporting iron ore pellets to China from 2015 onwards. Despite the ongoing discussions on imposing pellet export duty, Indian producers & exporters are taking positions as prices are trading at all-time high levels” , commented a pellet export trader.
Confirmed deal:
An eastren India based producer has concluded an export deal for 55,000 t pellet (Fe 63% grade, 3% Al) at $207/t CFR China, SteelMint gathered from its credible sources.
Chinese market participants highlighted that imported pellet demand is still decent but few steelmakers seems to be more interested for high-grade lumps. SteelMint learned that a couple of more pellet makers were offering material for exports but there is disparity between bids and offers by $2-3/t.
Rationale: One pellet export deal (T1) was heard so far this week hence considered for price calculation as T1 inputs and given a weightage of 50%.
SteelMint has received eleven indicative prices and offers (T2) and ten were taken into consideration with an average price of $195/t FOB India and given weightage of 50%.
- Spot iron ore fines price down by $3/t – Chinese spot iron ore fines (Fe 62%) index decreased by around $3.35/t on a daily basis yesterday and stood at $170.25/t CFR China against $173.6/t a day before. On a weekly basis also prices are down by $1.1/t against last week.
- Pellet inventories in Chinese ports decrease further – Pellet inventory at major Chinese ports have decreased last week by around 0.2 mn t to 6 mn t against 6.2 mn t a week before as per data maintained by SteelHome. However, on a monthly basis, inventories have come down by 0.9 mn t against 6.9 mn t a month before.
- Domestic pellet prices in eastern India remain stable- Indicative prices from Barbil have remained stable in the domestic market this week also. SteelMint’s pellet price assessment from Barbil (Odisha) at INR 11,800-12,000/t (loaded to wagon). However, some of the deals from Barbil heard to be concluded at 11,800-11,900/t (Loaded) this week.
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