China iron ore pellet: Prices rise

Seaborne pellet prices rose this week as steel mills increased the proportion of direct-charge material in the furnace burden because of sintering restrictions during China's week-long national day holidays.

Maintenance at a key Ukraine-based pellet producer also supported prices with fewer Ukraine-origin offers emerging in the market.

The Argus 64pc Fe, 3pc Al pellet was assessed at $105.50/dry metric tonne (dmt) this week, up by $0.50/dmt from last week. The 2pc Al was assessed at $107.50/dmt.

Overall market activity during the week was muted because of China's 1-7 October holiday.

A cargo of KIOCL Indian pellet with 2pc Al was done at $98-100/dmt on a fob basis on 4 October. While the destination of the cargo was unknown, it was unlikely to be China as KIOCL has been mostly shipping to the Middle East over the past couple of months.

The China market saw a cargo of JSPL Indian pellet for early October loading offered at $107/dmt today. A similar cargo with October loading was offered at $108/dmt. BRPL pellet was offered at $109/dmt. Bids for Indian cargoes were around $104-105/dmt.

Sintering restriction have pushed up the pellet ratio in the furnace burden of mills in Tangshan. Portside prices of pellet in Tangshan were also higher than that of Shandong ports.

A cargo of Indian pellet with 3pc Al was done at Yn930/wet metric tonne (wmt) or a seaborne equivalent of $116/dmt, at Tangshan port. A cargo of 65.1pc, low-alumina Ardent Indian pellet was sold at Yn975/wmt at Tianjin port.

A cargo of BRPL Indian pellet was offered at Yn950/wmt at Jingtang port and bid at Yn940/wmt. An Indian pellet cargo with less than 2pc Al was offered at Yn990/wmt and Yn1,020/wmt at Caofeidian and Rizhao ports respectively, while Indian pellet with 3pc Al was offered at Yn920-940/wmt at Rizhao.