SteelMint’s India pellet (Fe 63%, 3% Al) export index FOB east coast was recorded at $118/t, down $5/t w-o-w amid low demand in China due to preference for low-grade iron ore.
Increase in freight rates and fewer firm bids in the market limited export trades over the past week.
“It is difficult to determine with precision where the tradable level is. If the price is too low, Indian pellet manufacturers might not want to sell,” a China-based source said.
Rationale
- No deal was recorded in this week so far for price calculation under T1 trade and given 0% weightage in index calculation. Click here for methodology.
- Seven (7) indicative offers and bids were received, and six (6) were considered for calculation of the index, given 100% weightage.
Market highlights:
- Realisations in domestic market higher: Domestic pellets (Fe 63%, 3% Al) assessement stood at INR 9,500-9,700/t loaded on to wagon for Barbil, eastern India. On the other hand, SteelMint’s pellet export prices ex-plant for the Barbil region increased along with global price hike this week to around INR 8,100-8,200/t.
- Global iron ore prices decrease: The benchmark Fe 62% fines index decreased by $1.25/t w-o-w on 6 March to $125.35/t CFR China as against $124.1/t a week ago. Iron ore spot prices in China increased w-o-w on continuous buying interest in the market. Market players are looking forward to China’s “Two Sessions,” which is set to begin this weekend, for more indications next week. Trading activity at the portside slowed since there were few offerings in the market and less enquiries.
- DCE iron ore futures stable w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for May 2023 contract closed on 7 March (at 3 pm) at RMB 909.5/t, remained stable against 28 February. Prices moved up by RMB 12.5/t ($2/t) d-o-d.
- Port inventories in China decrease: Pellet inventory in China’s major ports stood at 6.6 mnt this week as against 6.9 mnt a week ago.
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