As per market sources report to SteelMint, an east India pellet maker has recently concluded 50,000 MT pellet exports deal at USD 109/MT, CFR China for which shipment are scheduled towards early May’18.
Spot pellet premium for Fe 65% grade has edged up this week to USD 43.15/DMT, CFR China, up by USD 1.15/DMT W-o-W.
Earlier, towards early Apr’18, a southern India based pellet maker – KIOCL concluded a deal for 50,000 MT pellets via limited tender. As per sources the deal was concluded at USD 105/MT, FoB basis. The cargo is likely to be shipped to South Korea.
India is the largest pellet exporter to China, and amidst stricter governmental regulations to curb pollution, Chinese mills have increasing demand for high grade ore (pellet). The production curb in Chinese major steel producing cities has been extended till mid Nov’18, to combat pollution, enhancing imports. Besides, Samarco, key source for China pellet, is not available till end of 2018, calls for increased imports from India.
Indian Pellet export Surge 8% Y-o-Y in FY’18 –
Indian pellet exports have increased 8% to 8.96 MnT in FY’18 against 8.26 MnT in FY’17. JSPL stood the largest exporter for FY’18 at 1.92 MnT, (21% of total pellet exports share). BRPL stood second highest exporter at 1.70 MnT, followed by KIOCL and Essar Steel. Other exporters were Rashmi Metaliks, Bagadiya Brothers, Arya Iron & Steel, and Jindal SAW.
Indian pellet exporters are hopeful that Chinese mills may raise their bids amid falling iron ore stocks with the mill. As per reports, small steel makers in China have low iron ore stocks and are likely to resume purchases shortly.
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