After observing limited export trades to China, Indian pellet market has witnessed an export deal. East India based pellet maker has concluded a deal last week.
According to market sources report to SteelMint, Odisha based pellet maker – Brahmani River Pellets Ltd (BRPL) has recently concluded a pellet export deal to China for 55,000 MT. According to customs data maintained with SteelMint, the vessel named “Ocean Colossus” is expected to arrive at Paradip port on 14th May’18.
As per sources the deal has been concluded last week at around USD 107/MT, CFR basis.
Earlier towards last week of Apr’18, an east India pellet maker had concluded 50,000 MT pellet exports deal at USD 109/MT, CFR China.
Indian pellet export offers to China is witnessed to be at lower side, and buyers have kept looking for prices up by USD 2-3/MT than current assessment.
Indian pellet export assessment has moved down due to strict environmental regulations to curb pollution in China. Owing to which Chinese mills are preferring pellets with low alumina content.
Besides this, the decrease in concentrate prices in China over months has resulted in mills preferring concentrate over other raw material. The iron ore concentrate price witnessed at around USD 100.83/MT as on 12th Jan’18 and at around USD 90.89/MT as on 11th May’18.
Indian Pellet Export drops 20% in Apr’18
Indian pellet exports have registered significant decline of 20% to 0.60 MnT in Apr’18 against 0.75 MnT in Mar’18. Chinese imports from India recorded decline of 30% M-o-M in Apr’18 at 0.37 MnT, as against 0.53 MnT in Mar’18.
BRPL marked the largest pellet exporter for the month of Apr’18 at 0.16 MnT, accounting 27% of total exports share, up marginally against Mar’18 exports. BRPL stood second largest exporter from India at 1.70 MnT in FY’18.
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