Ex-India pellet prices have consolidated at higher levels on the back of gains in global iron ore prices and a few large-volume deals, SteelOrbis learned from trade and industry circles on Friday, October 4.
Ex-India pellet prices have surged $11/mt to the range of $119-121/mt CFR China and, even though the number of trades reported in the market was fewer, deal prices were showing a strong uptrend.
According to sources, an Odisha-based producer concluded at deal for 75,000 mt at $120/mt CFR, while another pellet-producing arm of an eastern India-based integrated mill reported a trade for 60,000 mt at $121/mt CFR.
“Trading activity is expected to ease owing to the approaching holidays in India. But we do not see much downside risk to pellet prices in the view of global hardening of the price of iron ore. For now, a few large-volume deals are offering support to the pellet market. There is also a slight tightening of supplies in the local market, with producers hiking local sales prices,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“A more definitive trend will emerge after the holidays around mid-October. But the mood is expected to remain buoyant,” he said.