Indian pellet export prices remain unchanged for this week based on three trades of 50,000- 55,000 MT vessels each reported to SteelMint for standard grade pellet (having Al of 3%).
SteelMint’s weekly price assessment for 63.5 Fe (+/-0.5%), 3% Al stands at USD 121-122/dmt FoB India east coast for August loading.
Out of three deals, two deals were concluded by central & east India based pellet manufacturers at a price of USD 134-136/MT CFR China (equivalent to USD 121-122/MT FOB India), as per sources. Another deal reported was by southern India based pellet maker for similar quantity, as per sources deal was concluded at USD 124-125/MT, FoB India.
It is to be noted that east coast ports are highly congested owing to the high movement of low grade iron ore fines. This has led to increasing in vessel waiting period and hence the demurrage cost. The freight rate to China has now increased to USD 14-15/MT which was around USD 12/MT a week back.
Spot pellet premium for Fe 65% grade pellets assessed at USD 21.95/DMT, CFR China this week, down by USD 0.95/DMT W-o-W against USD 22.9/DMT a week before.
Indian pellet exports in H1 (Jan-Jun’19) stands at 5.9 MnT.
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