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 end of July.
As per sources the deal has been concluded at around USD 118-119/MT, CFR China. Indian pellet export assessment remained almost stable on weekly basis.
China’s recently released steel cut policies strengthen demand for high grade material –
China’s latest policies aims to cut steel capacities till 2020. Last week, the State Council, China’s cabinet, has rolled out a three-year action plan on air pollution control, aiming to significantly reduce concentrations of PM 2.5 through economic, legal, technological, and administrative means. The plan aims to greatly reduce major air pollutants in three years.
The focussed areas to improve air quality will be centered around Beijing, Tianjin, Hebei Province and neighboring northern regions, eastern regions of Shanghai, Jiangsu, Zhejiang and Anhui provinces.
Demand for lower impurities and higher Fe content raw materials are fetching better demand as it boosts utilization levels in steel plants. Pellet premium for Fe 65% grade was assessed last week at USD 61.95/MT CFR China, up by USD 1.45/MT against previous week.
In another deal concluded today for high grade (Fe 64%, alumina less than 2%) by southern India based pellet maker – KIOCL. The deal was heard to have concluded at around USD 117-118/MT, FoB India.
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