Indian pellet export deals turn slow on rising domestic prices

SteelMint's pellet index (FoB east cost India) has come down by $3.5/t w-o-w to $100/t on Wednesday (i.e 29th Jul) on lower bids from China. As domestic sales fetched better realization compared to exports, limited export deals were recorded.

Pellet export realisation from east coast of India was around INR 6,100/t ex-plant basis while domestic pellet offers from Odisha (Jharsuguda) were at INR 6,500/t ex-plant.

Also, pellet inventory at major Chinese ports have been increased to 9.5 mn t at the end of last week against 9.1 mn t a week ago pressuring CFR prices.

• An Odisha-based pellet maker concluded around 30,000t pellet export deal for Fe 64% grade pellet with 3% Al to China at around $112/t CFR with an FoB equivalent of $99.5/t for Aug loading. This deal has been considered for price calculation and included as a T1 transaction.
  
  
• SteelMint has received six indicative prices and offers in the publishing window. Out of that four inputs were considered for price calculation as T2 inputs with an average price of $99.5/t. Two inputs were eliminated as these offer prices were higher than market levels.
  
  
• T1 includes confirmed deals while offers, bids, and indicative prices are included as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage each in price calculation for FOB price assessment.