Ex-India pellet prices have remained stable amid silent trade conditions in the absence of buying interest and with Indian sellers achieving better realizations from local sales and hence not pushing offers, SteelOrbis learned from trade and industry circles on Friday, August 2.
Ex-India pellet prices have been maintained at $107-109/mt CFR China, but there have been no buyers due to Chinese mills’ poor margin.
Sources said that low finished steel prices and some mills in China going into maintenance shutdowns have kept buyers on the sidelines and even the reported fall in port stocks in China did not revive trade activity.
“Local pellet production costs are higher because of tight supplies of iron ore fines during the current rainy monsoon season. Pellet producers are hence not willing to adjust prices to push sales overseas,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Moreover, local sales realizations are still around INR 1,200/mt ($14/mt) higher than export margins, on ex-plant price basis. There is little incentive to sell overseas,” he said.