Post Vale disruption, Indian pellet export prices rallied anticipating shortage in seaborne pellet trades. However, market sentiments have turned dull after Chinese New year holidays. Amid shrinking steel margins, Chinese mills are preferring low-grade iron ore and concentrate rather than going for high-grade ore & pellets. They are also preferring port stocks rather than seaborne cargo.
This has resulted in limiting pellet inquiries for Indian pellets from Chinese mills. SteelMint has analyzed pellet export realizations of key Indian producers. Ex-plant realization for pellet export in central & eastern India is assessed around INR 5,800-6,200/MT.
Raipur pellet manufacturers are holding offers at INR 7,600/MT but no deals were reported. Market participants are expecting a sharp cut in offers in near term considering decline in P-DRI prices and fall in export realization.
| Particulars | Eastern India (Barbil) | Central India (Raipur) | Southern India (Mangalore) | |||
| USD/MT | INR/MT | USD/MT | INR/MT | USD/MT | INR/MT | |
| SteelMint Pellet Fe 63%, 3% Al assessment, CNF China | 120 | 8,532 | 120 | 8,532 | 120 | 8,532 |
| Vessel Freight from India to China | 10 | 710 | 10 | 710 | 10 | 710 |
| SteelMint Pellet assessment, FoB India | 110 | 7,820 | 110 | 7,820 | 110 | 7,820 |
| After deducting Moisture @ 3% on FoB Value | 106.7 | 7,585 | 106.7 | 7,585 | 106.7 | 7,585 |
| Export Duty | Nil | |||||
| Port charges | 4 | 300 | 4 | 300 | 3.5 | 250 |
| Demurrage, Admin, Interest & Other expenses | 4 | 300 | 4 | 300 | 4 | 300 |
| Freight from Port to Plant | 11 | 750 | 14 | 1,200 | – | – |
| Loading expenses | Nil – Considering private siding | |||||
| Ex-plant realization (rounded off) | 88 | 6,250 | 82 | 5,800 | 99 | 7,050 |
Source: SteelMint Research
Note: Although no recent deals have been heard, however prices calculated on last week’s deal of KIOCL (for low Al) pellets at USD 116/MT, FoB
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