Indian Pellet Makers Turn Active for Exports; Deals Reported

India pellet export market seems to be strengthening this week with a couple of deals being reported in last 3-4 days. Odisha based based pellet has concluded pellet export deal of 50,000 MT with Fe content 64/ 63%. As per the sources, the deal has been concluded at around USD 121/MT, CFR China for June shipments.

Also, another east India based major pellet maker BRPL was heard to have concluded pellet export deal to China. As per sources, the deal has been concluded at around USD 122/MT, CFR China for July. However, confirmation from company officials could not be received at the time of publishing this report.

Earlier this month, Brahmani River Pellets concluded pellet export deal to Turkey, SteelMint learned from market sources. Deal for pellets with Fe 64% and 3% Al was learned to be concluded at around USD 124/MT, CFR Turkey. Freight for Turkey is around USD 13/MT.

Another eastern India based pellet manufacturer is heard to have floated pellet export tender for 50,000 MT pellets (Fe 64%, 3% Al) for June shipments. As per sources, the tender fetched highest bid around USD 123/MT, CFR China. But the Indian pellet maker is eyeing for high bids. However Chinese mills look hesitant to book pellet at offers of USD 125/MT, CFR and kept bidding lower than current offers.

Market participants stated that amid cyclone in Odisha many shipments stand delayed from eastern India.

Indian pellet exports market is gaining strength amid falling inventories in China and global supply issues. Iron ore inventory at major Chinese ports fell to 131.7 MnT towards last weekend as against 133.35 MnT a week ago. Iron ore inventory have dropped to lowest levels since mid Oct’17, according to data compiled by SteelHome consultancy. Also, the supply crises caused due to Vale amid forecast of dam rupture is pushing Indian exports. Besides, global iron ore prices have picked up W-o-W. Spot iron ore fines Fe 62% index has picked up to USD 101/MT, CNF China as against USD 94/MT, CNF China towards beginning of last week. The prices have hit 5 years high as the prices were last seen in May’14.