Ex-India pellet prices remained stable, but no deals were reported with buyers from China largely absent from the market even while sellers maintained a positive outlook, SteelOrbis learned from trade and industry circles on Friday.
Ex-India pellet prices were stable at $120-122/mt CFR but no deals were concluded in absence of firm bids from buyers.
According to the sources, two southern India based pellet producers closed two export tenders of 50,000 mt and 55,000 mt respectively on 9 May but deals were not confirmed with a section of market intermediaries claiming that they remained inconclusive as bids were not found to be acceptable to the sellers.
“Post labour day holidays, buyers representing mills in China did not sustain buying and retreated. Some buyers were possibly resisting the recent gains in price and mills were preferring lower grade fines. However, local sellers are still in a positive mood and holding back deals,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“We hear that at least two Odisha based pellet producers diverted export stocks from port stockyards for local sales. Improved finished steel price augurs well for domestic pellet demand and producers are hence willing to wait longer for ex-India prices to consolidate further,” he said.