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SteelMint’s price assessment for normal grade pellets stands at around USD 119/MT, CFR China; higher by USD 1-2/MT W-o-W. China. Demand for Indian pellets in China continue to remain strong over less Indian supplies owing to the following reasons:

1. Better Realization in Domestic Market-: India pellet makers are getting a better realization in the domestic market over increased offers following recent iron ore price hike in Odisha. In Durgapur (eastern India) reference pellet price assessment stands at INR 6,900-7,000/MT (delivered) this week against last week’s assessment INR 6,800/MT. Barbil pellet price assessment stands at INR 6,500/MT (loaded to wagons) against INR 6,200/MT last week.

2. Monsoon Concerns: Upcoming monsoon in India make domestic sponge manufacturers prefer pellets over iron ore, which may lessen movement for exports further.

3. Logistics issue in the eastern India-: Trade sources highlighted that plants are currently facing extremely low iron ore/pellet rake availability in the eastern region which has hampered material movement.