Essar Steel, one of the largest pellet producer and exporter, shipped another pellet export shipment to China. This is the company’s second pellet export shipment in FY17.
Starting this week, the company exported around 50,000 MT high-grade pellet to China.
A vessel named “ Josco Nanjing” carrying around 50,000 MT high-grade pellet left Paradip Port on 05 Jul’16. The shipment is heading towards China and is likely to reach Rizhao Port till 18 Jul’16.
If we talk about global pellet prices, around 2 weeks ago, global pellet prices for Fe 63/64% were hovering in the range of USD 70-72/MT, CFR China, and the deal may have also concluded with the same range.
The company exported its first pellet shipment to China after a long gap of 8 months in the month of June’16. Around 50,000 MT high-grade pellet has been exported to China at around USD 61.9/MT, FoB Paradip Port.
In China due to heavy rain, a strong demand has been created for seaborne pellet and lumps. Chinese mills are opting for seaborne pellets to feed their steel mills. Also, pellet premium index moved up sharply and assessed at USD 23.5/DMT, CFR China.
So, as there is strong pellet demand in China, Indian pellet exports are likely to gear up in the coming time creating a strong export market for Indian pellets.
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