As spglobal.com reports, Seaborne iron ore pellets continued their steep upward trend and broke another all-time high on December 2 due to the continuing supply shortages.
Seaborne pellets prices rising
According to spglobal.com, this was due to the strong domestic Indian purchase price level and the recovering ex-Chinese steel production. This has led to the fact that with the currently high prices for iron ore pellets there is also only a limited supply available for shipments to China.
In addition, delays in the transfer of auctioned iron ore mine sites have led to a shortage of domestic Indian iron ore supply. As a result, domestic pellet prices in Raipur have been driven above the 11,000 rupees/mt mark on an ex-factory basis.
The high prices for coke have also prompted Indian end users to increase their pellet utilization rate, as coke consumption is lower compared to fine coal and lump cargo.
Shortage of spot pellet shipments continues
According to unnamed market sources, it is expected that a shortage of available spot pellet shipments for export would continue for the time being due to strong domestic demand and uncertainty about government regulations.
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