An Iron Pellet manufacturer located in the state of Odisha has concluded a deal for 30,000 tonnes of Fe 63 Pellets on ex-plant basis.
The deal has been finalized at Rs 7,500/MT (ex works Keonjhar); freight charges stand at Rs 1,300/MT.
Shipment of the material will take place from ParadipPort, in the third week of September.
Presently, the Odisha based manufacturer is not offering Pellets to domestic takers.
Netincon Marketing Private Limited, located in Kolkata (West Bengal) is a buyer of the material and this would be the company's first shipment in Pellets.
The Kolkata based party has decided to sell out the total quantity of Pellets to Chinese buyer, at US$139/MT FoB Haldia Port.
Exporting of Pellets is more feasible for manufacturers who are procuring Iron ore fines through road, due to lower freight charges.They have also preferred to conclude deals on FoB basis due to lack of infrastructure facilities.
A Pellet export deal at US$140/MT FoB from India is still viable as Rupee is weak at 67 level against US dollar and also as demand from China is good.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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