SteelMint’s pellet export index (FoB east coast India) has increased by $5/t w-o-w to $120/t on Wednesday (i.e 30th Sept) in the recent deals concluded by the pellet makers and traders so far this week.
Four pellet export deals were heard to be concluded this week. Out of that only three deals have been taken into final price calculation at $118-121/t FOB, India under T1 calculation carry 50% weightage.
Southern India based pellet maker – KIOCL has concluded the export tender for about 50,000 t pellets (Fe 64% and 2% Al) at $122-124/DMT FoB India and is likely booked for non-Chinese destination.
SteelMint has received around three indicative prices (T2) and they have been taken into consideration for final price calculation as T2 inputs with an average price of $120-121/t FOB India.
Spot iron ore fines price rebound ahead Chinese holidays – Chinese spot iron ore fines (Fe 62%) prices increased around by $9/t to $123.15/t CFR as against $114/t CFR China almost a week back on 24th Sept. On a daily basis spot, iron ore fines (Fe 62%) prices increased around by $4/t as against $118.95/t CFR China yesterday. Restocking done by Chinese steelmakers just before an upcoming week-long (1st to 8th Oct 2020) national day holidays in China have resulted in price hike. Also, iron ore futures rebounded in China after Vale announced the suspension of operations at a concentrated plant in Brazil.
Pellet inventory at major Chinese ports has increased around 0.4 mn t to 10.9 mn t this week against 10.5 mn t a week before as per Steelhome data.
Domestic pellet offers in India decline on weaker sponge prices – Domestic pellet market sentiments softened owing to weak demand amid declining sponge offer. SteelMint’s assessment for the domestic market in Barbil (Odisha) has come down to INR 7,700-7,800/t against last week INR 8,200-8,300/t (Loaded to wagon) equivalent to INR 7,500-7,600/t ($101-102/t) ex-plant realization. However, ex-plant export realization still lower than the prevailing domestic offers.
Amid heated discussions of pellet export duty, exporters/traders are little skeptical about the future market therefore they are not much actively stocking at the ports as they were usually doing before.
We expect approaching winters and Chinese sintering restrictions will help boost pellet sales after the Chinese holidays.
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