Ex-India pellet prices have remained unchanged, hovering around a seven-year low amid stagnant trade conditions in the absence of bids from buyers representing mills in China, SteelOrbis learned from trade and industry circles on Friday, September 20.
Sources said that ex-India pellet prices have been largely stable in the range of $94-97/mt CFR China, with some offers heard slightly lower by $0.50/mt but insufficient to drive any trade.
Trade sources said that stray bids have been reported at as low as $80-85/mt CFR but are considered “non-serious” by sellers.
“There is no sign of any significant uptick in restocking ahead of the holidays in China starting next month. Domestic prices of iron ore, we hear, are improving mostly on expectations of a government economic stimulus package, but this has not yet been translated into imported raw material,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“On the demand side, we see the stress on the property and real estate sector in China continuing to keep finished steel prices under pressure, and mills will hence continue to prefer lower cost iron ore fines. On the supply side, there is oversupply, with most global majors like Vale, Rio Tinto and BHP reporting higher outputs in the first half of the current year. Hence, the fundamentals of the raw material market indicate further downside risks to pellet prices,” he said.