According to the market participants report to SteelMint, bids for Indian pellet have declined further this week. As per sources, an East India based pellet maker received bids for regular grade pellets (Fe 64%) with 3% Alumina around USD 120-121/MT, CFR China in a recent export tender floated. However, pellet maker has not yet concluded it.
Imported pellet buying interest of Chinese mills learned to remain weak owing to increased supply of Chinese domestic pellets, resulting in less pellet export trades from India. Chinese mills are using domestic iron ore concentrate amid less stringent measure imposed on mines and mills. Currency (Yuan) depreciation against US Dollar was also one of the factors to reduce cost of production. Steel prices are also decreasing in China.
China Crude Iron ore Production Increased M-o-M – On monthly basis the production for the month of Sept’18 has increased by 4% to 66.93 MnT as against 64.66 MnT in Aug’18. Less stringent policy on mining in China led the mining production increased.
Indian pellet export deals which concluded last week – Essar Steel concluded deal for 2 prompt shipments of Fe 64% regular grade pellets (2.5% Al) at USD 126/MT, CFR China.
Central India based pellet maker concluded 50,000 MT export deal to China for Dec’18 shipment. As per sources the deal was for low alumina pellets and was heard to have concluded at around USD 129/MT, CFR China.
Brahmani River Pellets concluded a pellet export deal for 59,500 MT to China at USD 126/MT, CFR last week. The vessel name ‘’Neo Beachwood” was seen at the port yesterday for loading pellets.
KIOCL’s 50,000 MT pellet export tender to expire tomorrow- Southern India based pellet maker – KIOCL has offered 50,000 MT quantity (Fe 64%, less than 2% Alumina) for export via tender which is to expire tomorrow.
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