SteelMint’s India pellet export index (Fe 64%, 3% Al, FOB east coast) has remained stable, w-o-w, at $150/t.
One deal for 75,000 t of pellets (Fe 63%, 2.5-3% Al) was heard getting concluded last week from an Odisha-based pellet player at around $175-177/t, CFR China for Nov’21 shipment, sources confirmed.
State-owned pellet producer KIOCL has issued an export tender for Fe 63% (2% Al) pellets for the remaining period of Oct’21. It is going to be held between 14:00 hrs on 20 Oct to 14:00 hrs on 21 Oct and is solely for KIOCL’s empanelled customers. The minimum quantity offered is 55,000 t.
The tight supply of domestic iron ore concentrates in China due to the prevailing power rationing is expected to support the overall demand for high-grade material.
However, winter regulatory news was heard at Jingtang Port, which was starting to implement vehicle restrictions as part of environmental controls. A few Shagang Group mills had their production restricted to varying degrees, and restrictions on production continue to remain a concern.
Rationale:
- A deal was heard to have been concluded in this publishing window. Hence, the weightage given was 50%.
- Seven (7) indicative offers and bids were received, and five were considered for calculation of the index, given a weightage of 50%.
Market highlights –
- Spot iron ore prices edge up, w-o-w: The spot price of benchmark iron ore Fe 62% fines increased by $0.85/t, w-o-w, on 20 Oct to $124.45/t CFR China as against $123.6/t a week ago.
- Pellet inventory at Chinese ports increases, w-o-w: Total pellet inventory at China’s major ports was recorded at 4.4 mn t last week as against 4 mn t a week ago.
- Domestic pellet prices in India inch down, w-o-w : SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, decreased by INR 200/t to INR 13,800/t DAP Raipur on 19 Oct.
Leave a Reply