Ex-India pellet prices have remained largely stable, but no deals have been concluded as sellers have preferred local sales at higher prices, which have not been matched by overseas buyers, SteelOrbis learned from trade and industry circles on Friday, November 8.
Ex-India pellet prices have been maintained at $96-98/mt FOB east coast India, which roughly translates to $112-114/mt CFR China, but sellers remain focused on pushing local sales where margins have been at least $4-8/mt higher on ex-plant basis. In the previous three weeks, ex-India pellet prices were fluctuating at $112-117/mt CFR.
Sources said that sellers were banking on reports of declining port inventories in China and this could lead to renewed restocking, supporting prices to reach a higher level.
“There is no urgency among sellers to look at exports at a time when local steel mills are offering good bids to pellet producers. There is limited availability in the seaborne market and new bookings in the spot market are expected soon,” a member of the Pellet Manufacturers’ Association of India (PMAI) said on Friday.
“Sellers are keeping a close watch on the possible impact of the macroeconomic stimulus in China. Any rebound in indicators in China will determine the next pricing strategy of Indian pellet exporters,” he said.