Rising demand of Indian pellets in Chinese market and de-valued currency have benefited Indian pellet exporters in a big way.
Fairly good price in Chinese market coupled with de-valued Indian Rupee have given a big relief to Indian pellet manufacturers in recent time. When market anticipated that pellet prices in Indian market will fall rock bottom looking at over supply and consistently falling sponge iron production in the country, has got support from rising exports.
Pellet prices in Indian domestic market which touched an all time low of INR 6,000/MT (Ex-Barbil, Odisha) few months back, have gone back to INR 7,200/MT (Ex-Barbil, Odisha) in the month of November. This largely owing to exports taking place in big way and limited supply of iron ore in the domestic market.
SteelMint assessed that currently export prices are hovering in the range of USD 165-170/MT CFR China for 63.5 Fe Blast Furnace grade pellets.
Jindal Steel & Power Ltd (JSPL) has concluded another Iron Pellet export deal for December shipment.
JSPL is one of the largest Indian Pellet manufacturers having its plant in Barbil (Odisha), with 4.5 MnT pa installed capacity. It has closed an export deal for 50,000 MT of Fe 64/63.5 Pellets, at a price of around USD 169/MT on CFR China basis with a Hong Kong based trader.
Cargo is likely to be loaded in the month of December from Gangavaram port, India’s east coast. Previously Jindal had concluded a deal of 50,000 tonnes with a Switzerland based trader at the same price.
Freight charges stand at 13-14 dollars. Shipment of the raw material will take place from Gangavaram Port because of congestion at Paradip Port.
Trade Wise
- 63.5 Fe Pellets offered at INR 7,200/MT (Loaded to Wagons) at Barbil,Odisha
- Indian 63.5+ Fe Pellets sold at USD 169/MT CFR China
- Brazilian high grade pellets at USD 173-175/MT CFR China
- Indian 63.5/63 iron fines at USD 137/MT CFR China
- Australian 61.5 iron fines at USD 136/MT CFR China
Leave a Reply