According to market participants report to SteelMint, BRPL (Brahmani River Pellets) – an East Indian (Odisha) pellet maker has recently concluded a pellet export deal. The deal concluded is for 55,000 MT pellets for July shipments. The pellet deal concluded is for pellets with 2.5% alumina content.
As per sources, the deal has been concluded at around USD 105/MT, FoB to China. Due to strict environmental regulations, Steel mills in China prefer low alumina content pellets led the Indian pellets makers getting better realization to export China. Lower the alumina content pellets higher the price to export to China.
The current vessel freight for Supramax vessel is around USD 10-10.5/MT.
In another deal concluded last week, Brahmani River Pellets Ltd (BRPL) has concluded a 50,000 MT pellet export deal of 3% alumina content to China for July shipment. The deal was concluded at around USD 110/MT, CFR China.
It’s evident that pellets with lower alumina content are fetching a good premium over pellets with comparatively higher premium.
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