Indian iron ore pellet prices in the Chinese
market increased this month, as mills stepped up purchases of direct-charge
material because of environmental restrictions amid tight supply of Indian
Deals for 64pc Fe Indian pellet in Tangshan were
done at 855-875 yuan/wet metric tonne (wmt) this week, up by Yn5-25/wmt from
last week. The seaborne-equivalent of the latest prices is 115-121 USDollars
per metric tonne (dmt), assuming 5pc moisture and 16pc value-added tax.
Indian pellet prices have also increased at
Shandong ports, where a cargo was recently sold at Yn850/wmt.
Demand for imported pellet has increased because
of frequent restrictions imposed on iron ore fines sintering, especially in
north China, in an attempt to control emissions. And mills in north China
currently prefer Indian pellet because of its 64pc Fe content, higher than the
63pc Fe content in domestic pellet, as well as because of higher prices of
domestic pellet in China.
Offer prices of seaborne Indian pellet are also
increasing because of a shortage of pellet in India as monsoon rains affect
mining. Prices of domestic pellet in Odisha, the country’s largest iron ore
producing state, increased by around 14pc from a month earlier to 6,200
rupees/t or 01 US dollar per ton, on June 1 according to domestic brokerage firm.
The monsoon season runs from June-September but peaks in July and August, so
domestic pellet prices may rise further.
Most spot pellet supplies available in China are
of Indian origin. India’s pellet exports to China increased by 5.65per cent
from a year earlier to 9.34million tons in the financial year that ended 31
A Shanghai-based trader received an offer of 62per
cent Indian pellet with June loading dates at110 US Dollars per ton. Indian
pellet typically sells on a 64pc Fe basis.