A central India (Raipur) based pellet maker has concluded an export deal for 55,000 MT pellets today, SteelMint learned from its credible sources. The low Alumina pellets deal was reported to be concluded at around USD 117/MT, CFR China.
SteelMint assessment for Fe 64% grade pellets with 3% Al increased by around USD 2/MT this week to USD 113-115/MT, CFR China against the last week’s assessment of USD 111-113/MT, CFR China.
Chinese steel mills that have resumed with almost full capacity are looking for an alternative supply of raw material after supply disruption from Brazil. It has created room for Indian pellet makers to supply steelmaking raw materials until and unless supply gets restore. However few trade sources are skeptical about the sustainability of sharp hike in iron ore fines price.
“There is resistance for high priced Indian pellets in China. Although offers are high but buyers are not very active to pay those levels yet”, few market sources highlighted.
Other export deals reported from India so far in this week-:
— Towards the beginning of this week, an Odisha based pellet maker had concluded an export deal via trader for around 20,000-22,000 MT pellets (Fe 64% grade with around 3% Al) at around INR 5,900-6,000/MT (loaded to wagons basis).
Last week spot pellet premium for Fe 64% grade pellets increased by almost USD 2/MT to USD 18.35/MT, CFR China as against USD 16.6/MT, CFR China a week back.
Yesterday spot iron ore fines (Fe 62%) price picked up by USD 1.25/MT to ten months high at USD 101.75/MT, CFR China.