Southern India based pellet maker – KIOCL has concluded two pellet export deals for 50,000 MT each as per sources. Two vessels consisting of Fe 64% grade pellets with less than 2% Al was reported to be concluded at USD 111.5/MT, FoB India, shared officials.
Although the destination of shipments could not be confirmed till the time of publishing this report, it is possible that deals have been concluded for the non-Chinese destinations.
Due to the weak demand and coronavirus outbreak in China, inquiries have slowed down. However few eastern India based pellet makers are heard to have floated pellet export tenders this week, the, however, response was heard to have remained dull. Indian pellet makers are eyeing for USD 120/MT, CFR China.
As per data compiled by SteelHome consultancy, pellet inventory at major Chinese ports increased to 4.6 MnT (till 6th Feb 2020) as against 4.1 MnT assessed earlier.
SteelMint’s assessment for Indian pellet export for Fe 64% (3% Al) stands at USD 118/MT, CFR China, marginally down by USD 2/MT this week.
Spot pellet premium down sharply W-o-W: Spot pellet premium for Fe 65% grade pellets down sharply by USD 7.15/MT to USD 32.85/MT, CFR China as against USD 40/MT, CFR China assessed a week before.
State-owned pellet maker – KIOCL (Kudremukh Iron Ore Company Ltd) recorded third-quarter FY20 sales at 0.648 MnT against the set target of 0.60 MnT. However, the pellet production was recorded at 0.59 MnT, drop as against the set guidance of 0.62 MnT.
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