Softening sentiments in domestic pellet market has forced Indian pellet manufacturers to explore export options.
According to market participants, one of the Indian Pellet manufacturer has recently concluded a deal of 50,000 MT pellet export to China for Mid Feb shipment at around USD 116.5-117/MT, CFR China.
The Indian manufacturers were seen developing keen interest in exports last week with offers hovering around USD 116-118/MT, CFR China.
In beginning of Jan’18, an Odisha based pellet exporter was heard to have concluded an export deal of 50,000 MT pellet for Jan’18 shipment at USD 116/MT, CFR China.
The growing interest in exports amid fall in domestic pellet prices which is owing to marked decline in sponge prices, compelling the traders and manufacturers to shift towards exports. A week before, the P-DRI prices in central India witnessed decline by around INR 200-500/MT W-o-W. Further, the pellet offers and demand in Indian domestic market have come under pressure facilitating exports.
The growing pellet premium is giving high impetus to pellet manufacturers for better export offers amidst declining domestic demand. The pellet premium witnessed an increase of about USD 1.2/DMT last week, with premium at USD 41.90/DMT in the beginning of week and USD 43.10 /DMT by the end of the week.
Indian Pellet Exports surge by 67% Y-o-Yin CY17
Indian pellet exports have seen a marked rise of 67% Y-o-Y to 9.68 MnT in CY’17 as against 5.79 MnT in CY’16. Indian pellet exports have increased sharply amid increased Chinese demand post-Samarco disruption. Post Samarco disaster, Chinese steel mills shifted to India to source pellet leading to increased exports from India. Also shift towards high-grade material (like pellets) resulted in improved pellet demand. China accounted 84% of total Indian pellet exports in CY’17.
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