Over 350,000t pellet export deals concluded from India as prices firm up

India’s pellet export market has regained momentum with a flurry of confirmed deals being heard. SteelMint’s weekly pellet export index (FOB east coast India) for Fe 64% grade has increased $7/t w-o-w to $182/t. Index has rebounded after it hit 1.5 month low last week.

According to credible sources report to SteelMint, over 350,000 t pellet deals have been concluded from India in last 3-4 days and out of that 250,000 t was booked for China.

Indian pellet export deals-:

Indian pellet makers have turned active post budget announcement on 1st Feb with no change in duty structure. On the other hand, Chinese demand has improved and market sources expect prices to improve further after CNY holidays.

“Pellet prices may go up post Chinese holidays as the demand is decent for pellets. I believe that the market may bounce back further by $5-10 after holidays”, a trader highlighted

Rationale: Total six pellet export deals were concluded in this publishing window. Out of total only four were taken into consideration for price calculation as T1 inputs and given a weightage of 50%. The remaining two deals were excluded as they are likely to be shipped from southern India based ports.

Apart from trades, SteelMint has also received five (5) indicative prices, offers and bids (T2) and all were taken into consideration with an average price of $183/t FOB India and given a weightage of 50%.

• Spot iron ore fines price up by $11/t w-o-w- Spot iron ore fines Fe 62% price increased sharply by $11/t in a week to $163.45/t CFR China amid tighter availability of high-grade ores and hike in futures.
• Pellet inventories at Chinese ports decrease – Pellet inventory at major Chinese ports have decreased marginally this week to 5.6 mn t against 5.7 mn t a week before as per data maintained by SteelHome. On a monthly basis, inventories have come down by 0.6 mn t against 6.2 mn t a month before.
  
• Domestic pellet prices in eastern India reduce further- Indicative prices from Barbil have dropped further in the domestic market. SteelMint’s pellet price assessment from Barbil down by around INR 100-400/t to INR 11,000-11,400/t (loaded to wagon) as against INR 11,400-11,500/t (loaded to wagon) against last week.