Post Vale disruption, Indian pellet export prices rallied anticipating shortage in seaborne pellet trades. However, market sentiments have turned dull after Chinese New year holidays. Amid shrinking steel margins, Chinese mills are preferring low-grade iron ore and concentrate rather than going for high-grade ore & pellets.
They are also preferring port stocks rather than seaborne cargo.
This has resulted in limiting pellet inquiries for Indian pellets from Chinese mills. SteelMint has analyzed pellet export realizations of key Indian producers. Ex-plant realization for pellet export in central & eastern India is assessed around INR 5,800-6,200/MT.
Raipur pellet manufacturers are holding offers at INR 7,600/MT but no deals were reported. Market participants are expecting a sharp cut in offers in near term considering decline in P-DRI prices and fall in export realization.
A spokesman of the Afghan ministry of oil and gas rejected media reports claiming that the country has stopped crude imports from Iran.
Sponge iron market seems to remain strong, as per manufacturers in central & eastern India. Rising raw material prices & active demand are likely to keep Indian sponge iron prices supported, they added.
It seems that the Graphite electrodes shortage that has cropped up in China in the latter of 2017 amid closure of polluting GE units seems to settle out as considerable surge have been recorded in country’s electrodes production as well as exports for the first quarter of 2019.
Department of Mines and Geology (Govt. of Karnataka) has floated the tender for auctioning of 4 iron ore blocks in Karnataka for its 4th phase.
The London Metal Exchange (LME) nickel market was last week gripped by the most acute tightness in a decade.
The iron ore market is on a surge, the price last week punching up through the $100-per tonne level for the first time in five years.