SteelMint: India pellet export index edges down w-o-w amid negative sentiments

SteelMint's India pellet (Fe 63%, 3% Al) export index FOB east coast was recorded at $112/t, inching down by $1/t w-o-w, due to low demand in China and disparity between bids and offers. No deals were concluded this week.

According to a producer source in eastern India, bids for Indian-origin standard-grade pellets are below $130/t CFR China.

As domestic realisations are higher, Indian manufacturers are not very aggressive in exports.

India's iron ore and pellet export shipments were recorded at 313,497 t in the first week of April 2023 in comparison with 165,000 t in the last week of March 2023, as per vessel line-up data maintained with SteelMint. The higher numbers were largely due to shipments booked earlier.

Rationale

• No deal was recorded this week and, thus, given 0% weightage in index calculation. Click here for the methodology.
  
  
• Nine (9) indicative offers and bids were received, and eight (8) were considered for calculation of the index, given 100% weightage.
  
  

Market highlights-

• Domestic market realisations high: Domestic pellet (Fe 63%) prices stood at INR 9,300/t loaded on to wagon for Barbil, eastern India. On the other hand, SteelMint's pellet export prices ex-plant for the Barbil region dropped further to INR 7,500-7,600/t this week.
  
  
• Global iron ore prices edge up w-o-w: The benchmark Fe 62% fines index increased by $0.9/t on 11 April 2023 to $122/t CFR China as against $121.1/t, a week ago. Iron ore spot prices in China improved w-o-w due to supply concerns as an impending tropical storm in Western Australia might disrupt loading schedules and cargo availability. Chinese buying interest has reduced from the previous week, which may prevent a further drop in seaborne prices.
  
  
• DCE iron ore futures stable w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract closed at RMB 798.5 /t on 12 April (at 3 pm), largely stable against RMB 797.5/t on 5 April.
  
  
• Port inventories in China stable: Pellet inventory in China's major ports stood at 7.2 mnt this week, stable compared to last week.