Ex-Indiapelletprices failed to hold on to early week gains as buyers retreated as demand pessimism deepened in key destinations, SteelOrbis learned from trade and industry circles.
Sources said that ex-Indiapelletprices firmed to levels of around $109/mt CFR China early in the week but settled below the $100/mt mark at $94-98/mt compared to $100/mt CFR a week ago.
Data from industry showed that an estimated aggregate volume of 55,000 mt were put on offer bypelletproducers in Odisha and Chhattisgarh but only one deal was reported in the market for 12,000 mt at $109/mt CFR China while both buyers and sellers retreated as prices fell below $100/mt.
“Sellers are unwilling to conclude trade below $100/mt CFR while buyers are uncertain over raw material demand and how the drought conditions in China will impact blast furnaces’ plans of increasing output,” a member ofPelletManufacturers’ Association ofIndia(PMAI) said.
“The current market is very distorted. Landed price of imported iron ore fines price in China is marginally higher than ex-Indiapelletprice. But blast furnace operators were still looking at fines as preferred feedstock. This has almost stalledpelletexports. Even medium term outlook is extremely bearish. Our rough estimate indicate that aggregate capacity utilization level ofpelletplants are down to 50 percent since May when export levy was imposed,” he said.