Iron Pellet manufacturers based in Odisha, are in talks with overseas buyers to finalize export deals, due to squeezed profit margins from domestic sales and favorable INR exchange rate at 60 levels per Dollar mark.
In the previous week, a 27,000 tons export deal was concluded at US$145/MT CFR China by a Pellet maker in Odisha, shipment to take place in August.
One of the manufacturer is trying to finalize a 55,000 tons export deal and has received offers at around US$130-135/MT FoB basis.
While, a couple of others are trying to make it on CFR basis, for which they received offers at around US$145/MT CFR China.
Demand for Indian Fe 63 DR Grade Pellets is low in the international market as the required Fe 65 and above is not available.
Hence, it is being difficult to get higher realizations from international market.
Brahmani River Pellets Limited (BRPL) has lowered prices to Rs 6,300/MT (ex works Jajpur); Rs 6,500/MT (loaded to wagons).
JSPL (Barbil) has moved 40,000 tons of Pellet for captive consumption, at its Oman based DRI furnace.
One of the Pellet producers has resumed sales and is offering the material at Rs 6,300/MT (ex works Keonjhar) and at Rs 6,700/MT (ex works Jharsuguda).
Iron ore miners in Odisha had lowered lumps prices sharply in July, which are expected to drop further for August bookings.
Current Pellet prices are under pressure and have room for further correction.
In the beginning of the next week, a couple of Pellet manufacturers are anticipated to resume sales.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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