India’s pellet export trades remained stable compared to last week. SteelMint’s India pellet (Fe 63%, 3% Al) export index FOB east coast was assessed at $118/t, stable w-o-w. Prices increased slightly last week before the Lunar New Year on restocking needs ahead of the holidays.
The Chinese market will officially open on 30 January but buyers may take some time to return as they may watch the market for two-three days. Meanwhile, portside trading activities remained mute as most market participants were done with their procurement ahead of the Lunar New Year holidays.
India’s pellet export shipments were recorded at 355,870 t in the third week of January in comparison with 527,070 t in the previous week, according to vessel line-up data maintained with SteelMint.
Rationale
- No deal was reported this week and hence not taken under T1 trade and given 0% weightage in the index calculation. Click here for methodology
- Eight (8) indicative offers and bids were received, and seven (7) were considered for calculation of the index, given 100% weightage.
Market highlights
- Export realisations lower than domestic: As per SteelMint analysis, domestic pellet (Fe 63%, 3% Al) offers stood at INR 9,500-9,600/t ($117-118/t) loaded on to wagon for Barbil, eastern India. On the other hand, SteelMint’s pellet export prices ex-plant for the Barbil region remained rangebound at around INR 7,800/t ($96/t).
- Global iron ore prices down w-o-w: The benchmark Fe 62% fines index fell by $0.35/t w-o-w on 20 January to $126.65/t CFR China as against $127/t a week ago. Spot prices of iron ore in China slightly decreased w-o-w due to slow buying for February arrival shipments since steel mill restocking was nearly finished before the Lunar New Year holidays.
- Port inventories in China stable: Pellet inventory in China’s major ports stood at 5.6 mnt this week, stable against last week.
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