SteelMint’s pellet export index (FoB east coast India) has increased by $4.5/t w-o-w to $115/t on Wednesday (i.e 02nd Sept) due to an increase in inquiries from China.
Confirmed trade – No pellet export deal has been concluded so far this week, so there was no T1 category of inputs.
However, two trades were concluded to China towards the end of last week, which have not been considered under T1. One deal was concluded at $127/t CFR China.
SteelMint has received around four indicative prices and bids in this publishing window. All were considered for price calculation as T2 inputs with an average price of $115/t.
Methodology – 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.
Market overview – Chinese spot iron ore fines (Fe 62%) prices increased by around $3/t today to $128.05/t CFR against at $125.45/t CFR China yesterday. On a weekly bases, spot prices increased by around $5/t against $ 123.25/t CFR China last week.
Chinese pellet buying interest improved for India pellets this week. As the medium grade fines prices are trading high, this has made pellet making process costlier for Chinese steel mills. Notably, the production ban for air pollution reduction, which was supposed to end by 31 Aug’20, remained in force as of 1 Sept’20. However, India pellet makers are mostly focusing to explore the domestic market as its look more lucrative than the export realization.
Pellet inventory at major Chinese ports decreased marginally last week to 10.6 mn t against 10.9 mn t a week ago as per Steelhome data.
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