Ex-India pellet prices have improved amid the return of buyers representing mills in China, while few sellers have commenced negotiations, and so no deals have been confirmed over the past week, SteelOrbis learned from trade and industry circles on Friday, April 19.
Ex-India pellet prices are up an average of $7/mt to the range of $103-109/mt CFR China and negotiations are heard between buyers and sellers, but deals have not been concluded, with buyers cautious on prices as mills have been keen to keep costs down and protect margins, while sellers are buying time for prices to move up further.
Trade circles said that a government-run pellet producer had floated a tender-based export offer for 50,000 mt, but reportedly set an acceptable price of $122-123/mt CFR, which several market participants claimed to be “too optimistic”.
“Export prices have improved from a three-year low recently, but are still not feasible enough for most producers to conclude deals. Some pellet producers already with large stocks at ports have commenced supply negotiations, but are holding back deals, waiting for the uptrend to gain momentum,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“Producers have increased domestic prices by INR 600/mt ($7/mt) over the past week. Hence, local sales realizations continue to be better that export realizations. So, unless sellers get a decent price, they are not in a rush to conclude deals,” he said.