Ex-India pellet prices inched down on reaction of lower bids and year-end considerations and no deals were concluded for China, but sellers maintaining optimistic outlook even as holding back offers at current levels, SteelOrbis learned from trade and industry circles on Friday, December 22.
Ex-India pellet prices were down $2/mt at $137-140/mt CFR China but sellers declined to accept lower bids citing rising cost of production following increases in iron ore fines price in the local market.
The sources said that a deal for 55,000 mt high grade pellet was reported in the market at $144/mt CFR by an Odisha based pellet producer for non-China buyer but did not disclose the destination.
“There is some caution among buyers from China owing to year end considerations and usual low steel output during winter months. But local sellers are unwilling to settle for deals at lower levels and are instead holding back volumes expecting the market to rebound in the New Year,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“The dip in price has come at a time when railways are charging premium on freight and inland pellet plants are unwilling to sell now. But we see that the market dynamics will change in a positive way after a few weeks,” he said.