As per customs data maintained by SteelMint, Odisha based pellet maker-Brahmani River Pellets (BRPL) is to export 48,000 MT pellets to China. The vessel named “Dubai Sun” is at anchorage at Paradip Port currently.
Market sources shared that the deal was concluded at USD 61/MT, FoB Paradip Port. The vessel freight to China is around USD 5-6/MT.
The Odisha based pellet maker has a pellet capacity of 4 MnT pa and this is its first pellet export shipment in this fiscal.
Following factors have increased the viablility of pellet exports from India:
1. Increasing global pellet index-Pellet prices for Fe 65% have moved up approximately by USD 23/MT in last three months and are currently at USD 75.4/MT, CFR China
2. Rise in pellet premium- Pellet premium for Fe 65% BF grade pellets has moved up considerably and last week it was assessed at USD 16/MT, CFR China. Towards the beginning of Jan’16 pellet premium was assessed at USD 10.6/MT, CFR China
3. Removal of pellet export duty- In a move to boost Indian pellet export, govt. of India on 04 Jan’16 scrapped off pellet export duty which was 5% earlier
By Feb’16, Indian pellet exports in this fiscal have summed up to 0.78 MnT. Out of which Essar Steel exported 0.61 MnT and KIOCL exported 0.17 MnT.
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