Indian Pellet Export Prices Continue Uptrend on Strong Buying

Hike in iron ore fines index, increase in futures and strong buying interest have collectively kept the market sentiments supported in the Indian pellet export market. An Indian pellet export tender for 50,000 MT pellets of Fe 63% grade with 2.5% Al is heard to have received bids at around USD 106-107/MT, FoB India as per credible sources report to SteelMint. However, as per sources the deal is yet to be concluded.

SteelMint assessment for Fe 64% grade pellets with 3% Al increased sharply this week by around USD 5-6/MT to USD 111-113/MT, CFR China against last week's assessment of USD 107-108/MT, CFR China.

Spot pellet premium increased USD 4/MT W-o-W -: Spot pellet premium for Fe 64% grade pellets has increased by almost USD 4/MT to USD 16.6/MT, CFR China as against USD 12. 8/MT, CFR China a week back.

According to SteelMint analysis, India pellet export offers has been increased sharply from the last week following a sharp increase in spot iron ore fines price from the beginning of last week. Spot iron ore fines price for Fe 62% grade has increased W-o-W by USD 5/MT to USD 96.1/MT, CFR China as against USD 91/MT, CFR China. Similarly, on a monthly basis price has increased by USD 12/MT against month USD 84/MT, CFR China. Prices have increased on supply concerns from Brazil.

As per reports, Dalian iron ore futures rose for a sixth straight session yesterday hitting USD 100/MT, as concerns over supply from Brazil and China's strong appetite for iron ore.