Jindal Steel & Power Limited (JSPL), one of the largest Iron Pellet manufacturer located in Barbil (Odisha) with 4.5 MnTPA installed production capacity, has concluded its third export deal in the current week.
The total quantity of Fe 62.5 Pellet stands at 50,000 tonnes and the deal was finalized at US$ 155.5/MT CFR China, with a Hong Kong based trader namely Poly Resources.
China is the major export market of Poly Resources, which is an overseas listed company of China Poly Group.
Shipment of the raw material will take place from Paradip Port in the month of October.
Domestic Pellet Prices move up further
JSPL has raised offers by Rs 500/MT to Rs 7,200/MT (loaded) for domestic buyers after winning a third deal at higher prices, coupled with low supply of Pellets in domestic market uptick in Sponge iron offers.
Another Barbil based manufacturer has also increased prices by Rs 300/MT to Rs 7,000/MT (loaded) and remarked that production level has dropped by 30% owing to rise in moisture content in Iron ore fines.
Jajpur: Rs 7,000/MT (loaded) (+300)
Tatanagar: Rs 7,400/MT (+300)
Bellary: Rs 7,100-7,300/MT (+100) & Rs 5,900/MT for Fe 60 (-100)
Basic prices for Fe 63
A couple of traders located in South Korea and Switzerland, have received offers from Essar Steel Limited (Paradip) for a Pellet export deal, but at higher prices i.e. US$ 170 CFR and have rejected the same.
It has been heard that more than a couple of Odisha based Pellet makers are in talks with Iran based buyers to finalize an export deal, for shipment during the month of October/November.
Requirement of Iranian takers is Fe 66 Pellets as they procure the same from Gulf.
Odisha based Pellet producers would require high grade (Fe 65.5) Iron ore fines for manufacturing high quality Pellets, which is quite difficult as of now and are in discussions for supplying Fe 64.5 Pellets.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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