In the beginning of the week JSPL have closed the export tender of 50,000 MT of Indian pellet at USD 121.50/MT CFR China, for the Sept end or early Oct’17 delivery.
The upward movement in India pellet market have had the repercussions on global steelmaking raw material market pushing the spot pellet premium at around USD 41.5/DMT, CFR China currently a 17% increase W-o-W which was USD 35.9/MT last week.
Pellet exports prices from India have climbed to almost 38 months high in the recent tender conducted by the manufacture.
According to market participants report to SteelMint, the highest bid received was at around USD 121.5/MT, CFR China which is equivalent to USD 112-113/MT, FoB India.
This is higher by USD 7-8 against SteelMint’s last week assessment of Indian pellet export prices of USD 114-115/MT, CFR China.
The increased demand from China for high grade material has pushed the pellet prices to its record high in India. The Chinese manufactures are using high grade material to mitigate the increased coking coal prices resulting in favor of Indian pellet exporters. The reduced use of sinter and environmental control policies in China have forced the industry buying turn to the better quality feeders to curb the hazardous levels of pollution.
According to reports Beijing in its efforts to look green before “The National People’s Congress” in Oct’18 and is believed to the strong reason for the mills to be ordered to cut down on their sintering units nearby the capital in turn forcing to evaluate the other options like lump or pellet as feeders.
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