East India based pellet maker-Brahmani River Pellets concluded pellet export deals to Indonesia last week. As per sources, vessel named “Oriental Angel” carrying a quantity of around 60,000 MT pellets of grade Fe 64% with 3% alumina is expected to arrive at Indian port for loading on 21st Dec’18. As per sources, the deal has been concluded at USD 110/MT, CFR Indonesia for Dec shipment. Vessel freight rate from India to Indonesia is around USD 7-8/MT.
According to the vessel line up data maintained with SteelMint, Brahmani River Pellets Limited (BRPL) has recorded a sharp increase in pellet export volumes in Nov’18. BRPL sailed out 6 vessels and stood the largest exporter for the month of Nov’18 at 0.34 MnT (up almost six-fold M-o-M), accounting 33% of total Indian pellet export share. Other major exporters were Rashmi Metaliks at 0.22 MnT, KIOCL at 0.17 MnT and JSPL at 0.15 MnT.
BRPL, co-owned by Thriveni Pellets Pvt Ltd and JSW Techno Projects Ltd. BRPL is looking at revamping and redesigning of its plant. Though the pellet complex has a nameplate capacity of four MnT p.a., it was operating at lower capacity levels in past years, but the new promoters are making efforts to increase its capacity utilization.
A week back Jindal Steel & Power had concluded an export deal to China for around 50,000 MT for regular grade pellets (Fe 64%, containing 3% alumina) at around USD 110/MT, CFR China.
As per reports, China’s top steelmaking city, Tangshan in Hebei province has ordered steel mills and other industrial plants last week to make additional output cuts on top of those already ordered during the winter heating season. The steel mills in smog-prone Tangshan city will be required to shut their shut their sintering capacity by 30-60% or even shut down based on their emission level, while coke plants must extend production time in order to churn out less dust.
Following this, few Indian pellet makers are hopeful of improvement in pellet inquiries from Chinese mills.
Spot pellet premium Increased by USD 2.55/DMT W-o-W -: Spot pellet premium for Fe 65% grade pellets assessed at USD 49.10/DMT, CFR China last week, up by USD 2.55/DMT W-o-W against USD 46.55/DMT a week before.
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