Indian pellet export prices fall marginally on limited Chinese buying

-- SteelMint's pellet index ( FoB east cost India) inched down to $100/t as on Tuesday (23rd Jun'20). The previous assessment was done on 19 June at $100.1/t. Limited buying interest from China was seen on increased port inventories.

-- An Odisha based pellet maker concluded around 25,000 t pellet export deal for Fe 64% grade pellets with 3% Al to Malaysia at around $115/t CFR with an FoB equivalent of $102/t. This deal has been considered for price calculation and included as a T1 transaction.

-- An unconfirmed pellet export deal was heard at $112/t, CFR China was considered as a T2 transaction at a fob equivalent of $100/t.

-- SteelMint received around six indicative prices/offers in the publishing window but only four were included for final price calculation as T2 inputs. Two of the offers were higher than average market levels and hence not considered for price calculation.

-- 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 exports assessment.