According to market sources reported to SteelMint, Odisha based pellet maker – Jindal Steel & Power (JSPL) has recently concluded a pellet export deal to China for 50,000 MT. The material is likely to shipped in last week of June.
As per sources the deal has been concluded at around USD 97/MT, FoB to China. Indian pellet export assessment remained almost stable on weekly basis.
The current vessel freight for Supramax vessel is around USD 10-10.5/MT.
In another deal heard, a Odisha based prominent pellet maker has concluded yesterday for a quantity of 50,000 MT pellets. The deal has been concluded at around USD 106/MT, CFR China.
Indian pellet export assessment is witnessed on lower side due to strict environmental regulations to curb pollution in China. Owing to which Chinese mills are preferring pellets with low alumina content. This has led to Indian mills exploring non-Chinese markets.
Indian Pellet Export drops 33% in May’18
Indian pellet exports registered significant decline of 33% to 0.40 MnT in May’18 against 0.59 MnT in Apr’18.
JSPL marked the largest pellet exporter for the month of May’18 at 0.15 MnT, accounting 38% of total exports share, followed by Essar Steel at 0.11 MnT and BRPL at 0.08 MnT.
Sharp increase in domestic pellet offers in eastern India
Also, domestic pellet prices in eastern India have moved up significantly on improved preference over limited iron ore rake availability. Prices have increased by INR 700-800/MT (USD 10-12) in last couple of weeks.
JSPL pellet offers for domestic market are assessed at INR 6,200/MT (loaded to wagons, GST@5% extra), which comes around USD 93/MT (GST extra). Previous assessment of INR 5,900/MT (loaded, GST@5% extra).
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