As per sources, the pellet maker has two more export vessels in pipeline which will be shipped to South Korea in next 2-3 months.
According to market sources report to SteelMint, west India based pellet maker – Jindal SAW has concluded pellet export deal to a South Korean major steel maker. The deal concluded was for around 50,000 MT pellet. As per vessel line up data maintained with SteelMint, on 8th June’18 the pellet exporter shipped a vessel named “Mastro Nikola” for pellet to South Korea. The deal was heard to be concluded at around USD 119/MT, CFR.
SteelMint has also learned from the sources that, company has also concluded a deal for 50,000-52,000/MT pellets each which is likely to be shipped in July and September.
Domestic pellet offers of Jindal SAW are around INR 7,050/MT (delivered Kandla).
According to data maintained with SteelMint, Jindal SAW exported 215,000 MT pellets in FY18 as against 52,500 MT in previous fiscal.
Last week, Kudremukh Iron Ore Company Limited (KIOCL) had also concluded a deal of around 60,000 MT pellets to South Korea.
Due to environmental regulations and stricter policies to reduce pollution in China, steel mills have looking for high grade material with lower alumina content. There is increasing demand for pellet with low alumina content in Chinese markets. Perhaps, Indian pellet exporters have started exploring other markets like Japan, Malaysia and South Korea.
Indian pellet exports to South Korea jump over eight fold
As per data maintained with SteelMint, Indian pellet exports to South Korea moved up from 0.05 MnT in FY17 to 0.44 MnT in FY18. South Korea accounted for 5% share in FY18 Indian pellet exports.
Leave a Reply