Chinese bid prices for Indian Pellet have come down owing to falling Iron ore prices in spot market. Iron ore prices, which were corrected by USD 5/MT this week, have impacted Indian Pellet prices as well.
Last deal of 63.5 Fe Pellet was settled at around USD 134-135/MT FOB East coast India, which is now being asked for around USD 130/MT FOB. However, no offer or trade has been heard at these prices.
Indian Pellet manufacturers have been hit hard after Indian Finance Ministry imposed a 5% export duty on Pellets on 27th January. Since then, exports of Pellets have fallen down drastically.
Indian Pellet manufacturers and exporters mention that it is not at all feasible for them to export at current prices. Their cost of production is much higher than realization in export market.
Indian Pellet exporters have not been able to charge high premium for high gangue content (which is up to 7-8 %).
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