Dull Chinese Buying Interest Puts Indian Pellet Export Prices Under Pressure

Declining Chinese steel prices have weighed down Indian pellet export prices. SteelMint in conversation with its trade sources learned that offers for Indian pellets (Fe 64%, 3% Al) were heard at around USD 105-106/MT, CFR China levels, down by USD 5-6/MT W-o-W.

However, due to limited buying interest, bids remained varying in the range of USD 100-103/MT, CFR China levels. Few traders also reported to have received bids below USD 100/MT, CFR China but it could not be confirmed till the time of publishing this report. However, no deals were reported so the market still lacks clarity on price levels, shared sources.

As per the sources, the falling steel margin in China resulted in mills' preference for low-grade iron ore fines. Chinese domestic rebar prices have come down to RMB 3,390-3,420/MT in eastern China as on 07 Apr, down by RMB 80/MT against last week. Thus market participants cited that fall in steel prices has lowered demand for high-grade ore.

Towards the end of last month, Indian trader concluded pellet deal for around 50,000 MT pellets (fe 64%, 3% Al) to southeast Asia, SteelMint learned from its reliable sources. The deal was heard to have concluded at around USD 111-112/MT, CFR which is equivalent to USD 100-102/MT, FoB.

Spot iron ore fines index for Fe 62% is assessed at USD 83.3/MT, CFR China today as against USD 91/MT, CFR China a month back.