After witnessing limited deals due to Chinese labour day holidays, Indian pellet export market has regained momentum. According to market sources report to SteelMint, an Odisha (eastern India) based pellet maker has concluded an export deal for Fe 64% and 2.8 Al content yesterday (i.e 13th May). The deal has been concluded at around USD 108/MT CFR China, for the end of May’20 shipment.
Jindal SAW- western India pellet maker booked a 50,000 MT pellet (Fe 63%) export deal yesterday to Malaysia at around USD 107/MT, CFR.
In another deal from Central India- a Raipur based major pellet maker has also concluded around 100,000 MT pellet export deal recently this week at around USD 104-105/MT, CFR.
Also, southern India based pellet maker – KIOCL has floated a tender for pellet export which is due shortly.
After these deals, SteelMint assessment for Fe 64% grade pellets with 3% Al increased sharply by around USD 8/MT on weekly basis to around USD 107-108/MT, CFR China against USD 99-100/MT, CFR China. Current export offers rose to almost 2-month high over the third week of Mar’20.
India pellet export offers increased sharply following a sharp increase in spot iron ore fines price from the beginning of this week. In this week, spot iron ore price for Fe 62% grade increased significantly yesterday (13th May) by USD 7/MT to USD 91.15/MT, CFR China as against USD 84/MT, CFR China a week back.
Spot pellet premium for Fe 65% grade pellets assessed at USD 19.4/MT, CFR China this week as against USD 25/MT, CFR China last week.
Indian pellet makers reported export deals in the last few days-:
| Supplier | Grade | Quantity (MT) | Price USD/MT CNF | Shipment Date/ Destination |
| Odisha Pellet Maker | Fe 64%, Al 2.8% | 50,000 | 108 | End May’20, China |
| Jindal SAW | Fe 63% | 50,000 | 107 | Jun’20, Malaysia |
| Raipur Pellet Maker | Fe 64%, Al 2% | 150,000 | 105 | Jun’20, China |
| Raipur Pellet Maker | Fe 64%, Al 3% | 100,000 | 104-105 | Jun’20, China |
| West Bengal Pellet Maker | Fe 64%, Al 3% | 50,000 | 104 | N/A, China |
Source-: SteelMint Research
Leave a Reply