On relatively stable global iron ore prices along with the suppressed domestic demand due to wet weather, Indian pellets are being preferred as a feeder.
Currently Indian pellet export offers are at around USD 99-100/MT, CFR, China. Freight is also increased from Dhamra to USD 9-9.5/MT. FoB prices are around USD 90-91/MT. An East India based exporter confirmed that the company may offer next cargo of 2 vessels in a couple of days.
Currently pellet premium prices are observed at USD 30/MT CFR, China.
Samarco may take the remainder of 2017 to resume operations
The Mining and processing at Samarco has not started yet as it was stopped due to the failure of the Fundão tailings dam and Santarém water dam in November 2015.
Reports are that the company has announced that the work will restart at the location not until 2018 due to one of the main approvals are awaited along with the work in progress for another important license.
It is to be noted that the production from Samarco was 12.05 MnT and 12.31 MnT in 2014 and 2015 respectively.
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