Ex-India pellet prices have edged up reacting to hikes in local iron ore fines prices announced by miners, but buyers have stayed away from concluding deals at the current high levels and no confirmed deals have been reported in the market, SteelOrbis learned from trade and industry circles on Friday, January 26.
Ex-India pellet prices have increased by around $2/mt to $132-137/mt CFR China as producers have factored in price increases effected for iron ore fines led by the largest miner NMDC Limited over the past week, but the higher prices have pushed buyers representing mills in China to the sidelines. Only one deal for Indian pellets with 63 percent Fe content and alumina lower than two percent has been rumored at over $140/mt CFR, which, however, has failed to be confirmed.
“Pre-Lunar New Year holiday raw material restocking has been very tepid. Steel mills’ margins in China remain under pressure and buyers are very cautious about restocking at the current high prices. Bids submitted are very low and local sellers are holding back deals,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“A few port-based pellet producers received some inquiries for low alumina pellets but demands for very high discounts were turned down by the sellers. With domestic iron ore fines prices increasing, the fundamentals of the export economy are turning bearish unless the ex-India price consolidates higher after the holidays in China,” he said.