Ex-India pellet prices have staged a robust rebound overcoming end-year considerations with buyers from China submitting aggressive bids anticipating that the market will rise further in the New Year on improved liquidity and demand for raw materials, SteelOrbis learned from trade and industry circles on Friday, December 29.
Ex-India pellet prices have gained around $5/mt to the range of $142-145/mt CFR China, while at least one deal for 50,000 mt of high-grade pellets with silica-alumina content less than three percent was reported at $149/mt CFR.
According to the sources, taking advantage of the unusual year-end bullish fervour, a southern India-based pellet producer floated an export tender for a significantly large volume of 100,000 mt for January.
An Odisha-based pellet producer has confirmed a deal for 55,000 mt at $145/mt CFR China, while another pellet-producing arm of an integrated mill has reported a trade for 50,000 mt at $142/mt CFR, the sources said.
Another central region-based pellet producer has reported a trade for 50,000 mt at around $145/mt CFR, the sources added.
“The active market conditions and aggressive bidding by buyers, particularly at the year-end, indicate a clear bullish direction for the market in the coming month. The restocking of raw materials seen now also indicates that raw material demand will continue to improve as mills in China get ready to increase post-winter output,” a member of the Pellet Manufacturers’ Association of India (PMAI) said.
“With domestic prices rising to the range of $110-120/mt ex-plant basis, no seller will accept lower export prices. Hence, there is sufficient head room to push offers up further,” he said.