India: SteelMint's pellet export index stable w-o-w; trade slows down

SteelMint's India pellet (Fe 63%, 3% Al) export index FOB east coast remained stable w-o-w at $109/t on 28 June 2023. No deals were heard in this publishing window in the absence of buyers who were all on vacation during the recently concluded Dragon Boat Festival.

Bids have remained lower against the offers quoted, which has resulted in limiting trade activities.

Pellet exports from Indian ports fall

India's pellet export shipments were recorded at 55,000 tonnes (t) in the fourth week of June compared to 182,000 t in the third week of June, as per vessel line-up data maintained with SteelMint.

Rationale

• No deals were recorded this week and, therefore could not be taken into calculation. Thus, gven 0% weightage in the index calculation.
  
  
• Nine (9) indicative offers and bids were received, and eight (8) were considered for calculation of the index, and given 100% weightage.
  
  

Market highlights

• Export realisations lower than domestic: Domestic pellet (Fe 63%) prices stood at INR 7,900/t loaded on to wagon for Barbil, eastern India. On the other hand, SteelMint's pellet export ex-plant price realisation for the Barbil region stood at around INR 7,100/t this week.
  
  
• Global iron ore prices inch down: The benchmark Fe 62% fines index decreased by $0.8/t w-o-w to $113.95/t CFR China on 27 June. The Chinese market was closed last week due to the Dragon Boat holidays. However, prices recovered at the start of this week.
  
  
• DCE iron ore futures inch up w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract increased by RMB 33/t ($4/t) w-o-w to RMB 830.5/t ($115/t) on 28 June (at 3 pm) as compared to RMB 797.5/t ($111/t) on 21 June. Prices increased by RMB 6.5/t ($1/t) d-o-d compared to RMB 824/t ($114/t) on 14 June.
  
  

Outlook

Pellet export prices may remain volatile amidst mixed sentiments from the Chinese market.