IRON and STEEL
Iron ore pellet prices were lower on the back of a broader fall in ferrous markets since yesterday.
The Argus 64pc Fe, 3pc Al pellet was assessed at $129.50/dry metric tonne (dmt) this week, down by $5.50/dmt from last week. The 2pc Al variant was assessed at $131.50/dmt.
Buyers were largely uninterested in bidding for India-origin seaborne pellet cargoes.
A cargo of BRPL pellet with August-loading dates was offered at $132/dmt today, with another cargo of Jindal pellet offered at $130/dmt today.
An unconfirmed deal for Indian pellet was done at $132/dmt yesterday.
A cargo of KIOCL pellet with 2pc Al was offered at $138/dmt although no bids emerged.
Domestic pellet prices in China are around 100 yuan/wmt ($14.22) cheaper than imported pellet, which has made steel mills reluctant to book seaborne cargoes amid narrow profit margins. Portside stocks of imported pellet are also substantial curbing price gains.
Pellet prices have also been pressured by the fall in lump prices.
Demand for low-alumina pellet is low, narrowing the premium of 2pc Al pellet cargoes against 3pc Al pellet.