East India based pellet maker – Jindal Steel & Power (JSPL) offered 50,000 MT pellets via online pellet tender conducted today for October shipment. As per market sources, the pellet maker has received highest bid at around USD 118.5/MT, CFR China.
Pellet premium has increased sharply this week by 18% W-o-W and is assessed at USD 49/MT, CFR China.
However seaborne iron ore prices have weakened owing to sintering cuts announced to curb pollution. Iron ore futures also weakened on dull sentiments. Spot iron ore fines (Fe 62%) index is today assessed at USD 66/MT, CFR China.
Last week, JSPL concluded pellet export tender for mid October shipment at USD 119/MT, CFR China. These prices were above market expectation as index has dropped in last few days.
Interrupted pellet supply from Brazilian Samarco, high demand for high grade material in China have collectively resulted in increased pellet exports from India this year. JSPL has by far remained the largest pellet exporter in CY17 and has exported 1.37 MnT pellets followed by BRPL 1.12 MnT and Essar Steel 0.86 MnT till Aug’17.
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