According to market sources report to SteelMint, KIOCL has recently concluded a deal for around 55,000 MT pellet ( grade Fe 64%) export to China recently at around USD 118-119/MT, CFR China. The material is for Feb end shipment.
This is higher by around USD 2/MT. The bids were realized at price higher than others over lesser Alumina content which is around 1.5-2%.
Earlier this week, another Indian pellet exporter was heard to have concluded an export deal of 50,000 MT pellet export to China for Mid Feb shipment at around USD 116.5-117/MT, CFR China.
The pellet premium witnessed a decline of about USD 1/DMT this week, with premium at USD 43.10/DMT in the beginning of week and at USD 42.10 /DMT towards the end of the week.
The Indian manufacturers were seen developing interest in exports as prices in domestic market have come under pressure amid reduced buying interest and limited trades.
KIOCL, the state owned pellet maker recorded total iron ore pellet production at 0.635 MnT in Q3 FY’18, up 31% as against Q3 FY’17. While in Q3 FY’18 pellet sales witnessed at 0.638 MnT, up 19% compared to Q3 FY’17. The company recorded total production of 1.7 MnT from Apr-Dec’17, with total sales at 1.763 MnT from Apr-Dec’17. The volumes have increased by 134% and 151% on yearly premises.
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