Indian Pellet Exporters Turn Active; More Deals Reported

After witnessing sharp hike in export offers, east India based pellet manufacturers have turned active in booking vessels for export. As SteelMint reported earlier, an Indian pellet export deal has been finalized at a higher price.

According to market sources report to SteelMint, around three pellet vessels have been booked by Jindal Steel & Power (JSPL) and few more east India based pellet manufacturers for export to China in last one week. And one more vessel is also in pipeline to be finalised. The vessels carrying nearly 50,000 MT pellets each have been booked for China for Jun’17 & Jul’17 delivery. The price at which deals have been concluded at around USD 87/MT, CFR China.

Currently Indian pellet export offers are assessed at USD 85/MT, CFR China. However market participants shared that pellet makers are eyeing for higher prices and thus have held back from finalising deal at mentioned offers.

Notably, spot pellet premium for Fe 65% pellets have increased to USD 22.05/DMT, CFR China. Pellet demand has gone up in China as a major source Brazilian Samarco is still away from resuming operations.

Indian domestic pellet prices remain stable this week – Indian pellet prices in domestic market have remained stable this week with improved buying activities against last week. Market sources are expecting pellet demand to remain good in the coming months as pellets is a preferred choice in monsoon season as it gets dried up quickly. However, prices of iron ore & P-DRI will continue to govern pellet pricing in domestic markets.

Indian Pellet Prices as on 30 May’17

*loaded to wagons
**delivered
Source: SteelMint Research