AISL re-negotiates its August Iron Pellet Export Deal
Arya Iron & Steel Ltd (AISL), having a 1.2 MnT pa Pellet plant in Barbil (Odisha), had concluded an export deal in the third week of August. Shipment of the material, which was to take place in September, got delayed.
The exporter has finally decided to ship the 35,000 MT Pellets in November, but at a higher price. On account of a delayed shipment, prices are now standing at USD 144/MT FoB, after a price re-negotiation between the trader and exporter. Prices are higher by USD 5/MT (was 139/MT FoB earlier). A vessel named MV Cielo Di San Francisco is expected to arrive at Paradip Port by 1000 hrs on 20 Nov, 2013, to carry AISL’s pellet.
Though, AISL, Essar and BRPL have moved their material to Paradip Port and congestion at Port still exists, exporters based in the eastern region are hopeful that the material would be delivered on time.
The exporter has finally decided to ship the 35,000 MT Pellets in November, but at a higher price. On account of a delayed shipment, prices are now standing at USD 144/MT FoB, after a price re-negotiation between the trader and exporter.Prices are higher by USD 5/MT (was 139/MT FoB earlier). A vessel named MV Cielo Di San Francisco is expected to arrive at Paradip Port on 20 Nov, 2013, by 1000 hrs, to carry AISL’s pellet.
Though, AISL, Essar and BRPL have moved their material to Paradip Port and congestion at Port still exists, exporters based in the eastern region are hopeful that the material would be delivered on time.
AISL is offering Pellets at INR 7,100/MT (ex works) to domestic buyers. Demand is not very encouraging because Pellet users have preferred to take Iron ore lumps and placed booking orders in big quantities. Also, slow off take of finished Steel products and no uptick in Indian Sponge iron prices in the past one month, has resulted in low buying interest. Offers might stand somewhere in the range of INR 7,000-7,300/MT (basic) in near term.
According to experts, “Apart from quality factor, international market has preferred to take Indian Pellets because of lesser delivery time of about 20 days in comparison to material being imported from countries such as Brazil, which takes about 1.5 months time.
Also, high grade Pellets (Fe 65) available with oversea producers are expensive. Indian Pellet producers are making Fe 63.5 grade Pellets, which is as per international market demand”.
BRPL ships 49,500 MT Pellets in mid-Nov
Brahmani River Pellets Ltd, a Stemcor project, has a 4 MnT pa Pellet plant in Jajpur (Odisha) for merchant sales only. It has closed a second Pellet (Fe 63.5) export deal for 45,000 MT.The deal has been closed with Stemcor, a UK based steel trader. BRPL has shipped 49,500 MT of Pellets (Vessel name – Frieda Selmer) from Paradip Port on 15 Nov, 2013.
BRPL is offering Pellets at INR 7,250/MT (loaded into wagons) to domestic takers; prices remain unchanged for the last one month.
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