According to Mining News Pro -Amidst uncertainty on sintering and production cuts in Chinese market, Chinese mills were seen showing preference to fines than pellets. This resulted in sharp hike in iron ore fines prices and spot iron ore fines prices touched 8-month high and was trading at USD 77/MT, CFR China for Fe 62% grade.
This resulted in decline in bids for imported pellets after dull sentiments prevailing amid Golden week holidays. Indian pellet export prices fell by USD 10/MT in last two weeks. However Chinese mills are back in the market with enhanced buying interest.
China Iron ore & pellet port inventory falls:
Iron ore inventory at major Chinese port reduced to 143.85 MnT last week. On weekly basis, port inventory declined towards end of last week as compared to 144 MnT, a week before and 149 MnT a month ago.
Indian pellet makers were booked for October deliveries and concluded four deals last week.
Indian Pellet export trade log for last week:
• Essar Steel concluded around 55,000 MT pellet export deal to China, with Fe 64% and Al 2.6%. The deal was concluded at around USD 138.55/MT, CFR China for Oct loading.
• Last week, Brahmani River Pellets Ltd (BRPL) concluded two pellet deals to China with quantity of around 60,000- 62,000 MT each. The deal concluded was for regular grade pellets with Fe 64% and 3% Alumina for end October shipment. As reported by trade participants, deals were concluded at around USD 137/MT, CFR China, with shipment scheduled in October.
•Earlier last week, Jindal Steel & Power concluded pellet export deal for around 50,000 MT for regular grade pellets (Fe 64/63%, containing 3% alumina). The deal was concluded at around USD 139-140/MT, CFR China. The material shipment was scheduled in October.
Better realizations in exports than in domestic market:
Realizations in exports are still higher than prevailing offers in domestic market. For an Odisha (Barbil) based pellet exporter, realization would come around INR 8,000-8,100/MT (ex-plant). While in domestic market last week Arya Iron & Steel offers were heard at INR 7,500-7,700/MT and JSPL continued to hold the previous rate of INR 8,200/MT. Trade reference prices in Durgapur was around INR 8,000-8,100/MT.
