Chinese mills have slowed down fresh bookings of pellets owing to upcoming holidays in china. (There are some holidays starting from 1-8 Oct in China).
An Indian supplier was heard to be offering Oct shipment at around 114-116/MT CFR China, but deal has not been concluded yet according to market participants. As per market sources last highest bid received by Jindal steel was at 118-119/MT CFR China for end of the Oct shipment on 21st Sep 2017.
According to participants, market price based on index should be around 113-114/MT CFR, China but Chinese mills were paying a premium for prompt delivery and high quality due to sintering and pelletizing restriction imposed by Chinese government in key steel producing areas.
Pellet premium are currently hovering at USD 50/MT but it is expected to move up as Chinese demand for high grade ore will continue. This was the general sense of participants in recently concluded iron ore conference in China hosted by China Iron and Steel Association (CISA).
According to data maintained with SteelMint Indian pellet exports from Jan – Aug in 2017 are reported at 5.93 MnT.
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