Engineering | February 2014
Iron ore pellet prices dip, exports come to a halt
Indian iron ore pellet prices have come down Rs 300 a tonne to Rs 7,000-7,100 a tonne after the announcement of a five per cent export duty. Makers are finding it difficult to sell in local markets. Exports have almost come to a halt. Export inquiries have gone down, shipping brokers said. The duty rise at a time of weak global prices and poor local demand was putting pressure on prices, makers said.
"We have not made a deal for 10 days, as there are no major enquiries from the Chinese and other buyers. The last was for $145 a tonne free on board (FOB) in Paradip Port (Odisha), same as January," said an official of a shipping agent.
Currently, traders are demanding Indian pellets at $140 a tonne at ports. The slump is also due to the closure of key Chinese markets, he added.