As per market sources report to SteelMint, inquiries for Indian pellet from Chinese mills remained decent after New year holidays. However reference pellet price assessment is at around USD 112/MT, CFR China levels for regular grade pellet with 3% alumina against the last assessment USD 110-111/MT, CFR China.
Market participants are hopeful that prices expected to increase by USD 2-3/MT shortly following increased inquiries from China.
“We did not offer any pellet cargo last week amid New year holidays, however, we are planning to float this week”, shared a participant from eastern India based pellet making company”.
Last export deals reported were by Jindal Steel & Power and Brahmani River Pellets (BRPL) to China and South Korea respectively.
Another pellet export deal to Malaysia was heard to be concluded, but details could not be confirmed at the time of publishing this report.
Spot pellet premium moves up slightly this week-: Spot pellet premium for Fe 65% grade pellets assessed at USD 44.9/DMT, CFR China this week, up USD 0.65/DMT against USD 44.25/DMT a week before. The pellet premium has picked up this week amidst stability in iron ore prices W-o-W. The iron ore fines (Fe 62%) prices this week are assessed at USD 73/MT, CFR China, almost stable as against last week’s assessment.
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