West India based pellet maker – Jindal SAW is heard to have concluded a pellet export deal and according to reports is planning for two more shipments soon. As per the market sources, the pellet maker has already concluded a pellet export deal last week-end for about 50,000 MT. Destination country is heard to be South Korea or Japan. Market participants mentioned that two more export vessels are in pipeline.
Currently assessment for Indian pellet export is at around USD 118-120/MT, CFR China. Freight from east coast of India to China is around USD 10-11/MT. Thus FoB price stands at USD 108-109/MT.
East India based pellet maker – Jindal Steel & Power concluded pellet export deal last week that received highest bid for its 50,000 MT pellet export tender at around USD 119/MT, CFR China. These prices were above market expectation as iron ore index has dropped in last few trading sessions.
Domestic Pellet Offers – Week 39
1. The prices for the rest of the India were stable except in South India down by INR 200 due to back-to-back holidays in the region, informed a source to SteelMint. The current offers are at INR 6500/MT for Fe 63% and around INR 6900-7000/MT for the higher grade of Fe 65%.
2. The traders in central India blamed the southward sneak in the sponge prices for the dull response in pellet market. Sponge Pellet offers in Raipur is assessed at INR 16,700 currently down INR 300/MT W-o-W against INR 17, 000/MT.
3. Jindal SAW reduced offers by INR 100/MT in line with fallen global prices and are currently assessed at INR 7,050/MT delivered Kandla .
Indian Pellet Reference Prices as on 19th Sep’17
| City |
Grade (Fe %) |
Basic Prices in INR/MT |
| Jamshedpur |
63 |
4,800-4900 |
| Durgapur |
63 |
5,200 |
| Raipur |
63 |
6,000 |
| Bellary |
63 |
6,500 |
| Barbil* |
63 |
5,300 |
| Jharsuguda |
63 |
5,500 |
| Kandla** |
63 |
7,050 |
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
*Loaded to Wagon
**Delivered
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