Seaborne pellet prices rose slightly this week, in line with gains in the major iron ore indexes.
The Argus 64pc Fe and 3pc Al pellet rose by 50¢/dry metric tonne (dmt) to $119/dmt cfr Qingdao from from a week earlier. The 2pc Al was assessed at $122/dmt, with the premium between 2pc and 3pc Al pellet unchanged at $3/dmt.
Spot trading for pellet picked up this week as optimism for a quick recovery in steel demand in China bolstered the Argus ICX 62pc fines index by around $2/dmt. Indian mining firms also reported increased inquiries and sales.
Two JSPL cargoes for March delivery were sold at $119/dmt cfr and $120/dmt cfr on 21 February.
Two cargoes of Rashmi Indian pellet were sold at $119.50/dmt cfr on 21 February at $120/dmt cfr on 24 February.
A cargo of Indian JSPL pellet was heard traded at $117/dmt late last week, and a floating cargo of Russian pellet with 65pc Fe and 0.3pc alumina was sold at a $32/dmt premium to March P62 index.
Early March loadings of JSPL Indian pellet were offered on 25 February at $121.50/dmt and $122/dmt, with a bid of $119/dmt.
In portside trade, high-grade KIOCL with 65.12pc and 0.86pc Al sold at 1,100 yuan/wmt ($139/dmt seaborne equivalent) at Rizhao, while another cargo of KIOCL with 64.3pc Fe and 1.84pc Al was offered at Yn1,075/wmt. KIOCL has been offered at Yn1,060/wmt at Caofeidian and at Yn1,050/wmt at Qingdao port.
Indian pellet with 64.5pc Fe and 3pc Al was offered at Yn1,010/wmt at Lianyungang port, and a cargo of KJS pellet with 64pc Fe and 3pc Al was offered at Yn980/wmt at Qingdao.
Russian pellet with 65.51pc Fe was offered at Yn1,080/wmt at Rizhao, and Ukrainian pellet with 64.99pc Fe was offered at Yn1,090/wmt at Qingdao port, up by Yn10/wmt from a week earlier. Citic pellet was offered at Yn1,060/wmt at Rizhao.
Demand for pellet has not been very strong, with usage driven mainly by winter sintering restrictions. But mills have shifted to lump that is more economical than pellet. There are also signs of weaker demand for higher-grade pellet from big steel mills that are trying to reduce costs, market participants said.
The same trend has buyers moving away from high-grade fines such as IOCJ. Some blast furnace mills have reported losses this month. The possibility of more production cuts also continues to loom as downstream demand has been slow to return.
