Essar Steel Ltd closed 100,000 MT Iron Pellet Export Deal
Essar Steel, the largest Indian Pellet producer with 14 MnT pa installed capacity, has its Pellet plants in Paradip (6 MnT) and Vizag (8 MnT). Material from the later is used for captive consumption. Whereas, Pellets from Paradip is offered in both domestic and export market.
Few weeks back, Essar had finalized a couple of deals for 50,000 MT Pellets (Fe 63) each, at USD 162/MT CFR. The first one had been closed with Sinosteel Corporation, one of the largest trader, having a Steel manufacturing unit in China. The second deal was concluded with Indo Resources Asia (IRA), an Indonesia based trader.
On account of delayed shipment earlier, the material is expected to be shipped in Nov (1st deal) and Dec (2nd deal). A vessel named MV Yin Neng is expected to arrive at Paradip Port, by 1800 hrs on 20 Nov, 2013, to carry Essar’s 50,000 MT of Pellets.
Prices are on the lower side in comparison to current market scenario. The exporter is delivering Pellets at a price, committed with traders earlier.
Pellets are not being offered to domestic buyers, as Essar is concentrating on export market and has to meet with timely shipment of its material.
Jindal Steel & Power Ltd (JSPL): A vessel named MV Marine Stars is at anchorage and had arrived at Paradip Port on 08 Nov, 2013. It is expected to carry 7,600 MT of JSPL’s Pellets. It is anticipated that JSPL might finalize a Pellet export deal by the end of this week. The Pellet maker will be shipping Pellets to Oman in near future, which is to be used for captive purpose.
Ardent Steel Ltd (ASL): ASL, having a 0.6 MnT pa Pellet plant has shipped 45,000 MT of Pellets on 12 Nov, 2013, from Paradip Port. Vessel name is Marine Stars.
Adhunik Metaliks Ltd (AML): AML, a Pellet manufacturer based in Tatanagar (Jamshedpur) might also wind up a Pellet export deal in about a week’s time.
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