Jindal Steel & Power Ltd (JSPL) has concluded an Iron Pellet export deal for December shipment.
JSPL is one of the largest Indian Pellet manufacturers having its plant in Barbil (Odisha), with 4 MnT pa installed capacity. It has closed an export deal for 50,000 MT of Fe 63.5 Pellets, at a price of USD 169/MT CFR China. The deal had been concluded on 14 Nov, 2013, with a Dubai (Middle East) based trader.
Freight charges stand at 13-14 dollars. Shipment of the raw material will take place from Gangavaram Port because of congestion at Paradip Port. JSPL has closed this deal at a good price, as offers in international market are standing at USD 165-170/MT CFR China.
This is the 2nd Deal between both the Parties
In August, JSPL had closed a 50,000 MT Pellet (Fe 63.5) export deal at USD 159/MT CFR China, with the Dubai based trader. Shipment of the material was made in the month of September, from Paradip Port.
JSPL’s recent Iron Pellet Export Deals
Source: SteelMint
Demand for Pellets has increased from China based Pellet users as it gives better productivity and also as its raw material requirement has increased. Pellets are readily available and lower to the cost of converting fines to Pellets.
Domestic Pellet Prices might rise on Low Supply
Since August 2013, Pellet manufacturers located in the eastern part of India have been concentrating on export market. Pellet exports, that had slowed down in the last couple of months, have picked up again.
INR has weakened to 63 against USD, resulting in higher realization in comparison to domestic sales. On account of short supply in eastern of India, Pellet prices might move up in near future. Current Pellet offers are quoted in the range of INR 7,000-7,100/MT (ex works Barbil).
Pellet Offers come down in Central India
Pellet offers come down to INR 8,200/MT in Central part of India and deals are heard to be concluded at INR 7,700-8,100/MT (ex works Raipur). One of the manufacturers has received bookings from a couple of Sponge iron plants and has sold its material at INR 7,700/MT.
In the last one week, Sponge iron prices have dropped by INR 150/MT in Raipur. Therefore, buyers have preferred to place booking orders at lower prices only.
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