According to market sources report to SteelMint, an Odisha based pellet maker has concluded export deals to China recently. Two deals of 50,000 MT each have been concluded for Fe 64% grade pellets and 3% Alumina. As per sources the deal has been concluded at USD 111-112/MT, CFR China for prompt shipments. Chinese mills have increased bids for Indian pellets W-o-W. Bids from Chinese mills were assessed at around USD 107-108/MT, CFR China levels last week.
Indian pellet makers are eyeing for hike in Indian pellet export prices after the Vale dam disaster. The disaster has resulted in reduced availability of material. Besides, the pellet plant at Samarco continues to remain suspended, further effecting availability of pellets.
Vale- world’s largest iron ore producer’s dam at Corrego do Feijao mine in Brumadinho collapsed on 25th Jan. At Feijao mine dam 1 collapsed, which was used to dispose tailings from ore production and was inactive. The disaster unleashed mining debris into the region resulting in loss of life and property especially in town of Brumadinho. The dam collapse has created uncertainty for Chinese mills amidst rising demand and need for low impurity high grade ore. Hence, opening better opportunities for Indian exporters.
Indian pellet exports dropped 15% in CY18
According to the customs data maintained with SteelMint, Indian pellet exports have marked a decline of 15% Y-o-Y to 8.19 MnT in CY’18 as against 9.68 MnT in CY’17. On monthly basis, Indian pellet exports have moved down 38% M-o-M to 0.64 MnT in Dec’18 compared to 1.04 MnT in Nov’18.
Leave a Reply