Seaborne pellet prices were higher this week as demand from steel mills was robust, although few deals were done as China was closed for the lunar new year holiday.
The Argus 64pc Fe, 3pc Al pellet was assessed at $126/dry metric tonne (dmt), up by $4/dmt from last week. The 2pc Al was assessed at $130/dmt, up by $4/dmt from last week.
Seasonal, winter-time shortages in domestic pelletising concentrate supplies, because of the closure of mines and sintering and pelletising restrictions to curb emissions across China, have lifted demand for imported pellet.
Lower pellet inventories at portside markets have also prompted stocking up by mills.
A cargo of BRPL Indian pellet was sold at $130/dmt on 22 January. An unconfirmed deal for 68,204t of Vale AF73 pellet was sold at a premium of $28/dmt to the February MB65 index on 22 January.
A cargo of Indian pellet with 3pc Al was sold at 1,000 yuan/wmt, or a seaborne equivalent of $128/dmt, at Tianjin port on 22 January.
Pellet demand may remain robust in the short term amid tight supplies from Brazil, India and Iran. But mills may be wary of booking cargoes if prices rise too sharply in the short term, with demand and prices for iron ore affected by the bearish sentiment caused by the outbreak of the coronavirus in China.
