India: Jindal Steel closed its second Iron Pellet Export Deal 

Jindal Steel & Power Limited (JSPL), one of the largest Iron Pellet producer based in Barbil (Odisha) has concluded its second export deal in Iron Pellet and continues to hold domestic sales.

Specification: Fe 63

The total quantity of Pellets is 50,000 tonnes and the exporter has finalized a direct deal this time at US$143/MT FoB Paradeep Port, with China based buyer.

Shipment of the raw material is to take place in the beginning of September.

Essar Steel Limited had also won an export deal for 50,000 tonnes of Fe 63 Pellets at US$151/MT CFR China, in the last week of July.

It was concluded with a Hong Kong based trader named Noble Resources Limited and Hebei Iron & Steel Group in China, is the buyer of Essar's Pellets.

In terms of domestic sales, the Paradeep based producer is targeting buyers located in the northwest region i.e Kandla and Southern region i.e. Chennai.

It has been heard that offers are standing at around Rs 7,400/MT CFR Kandla.

Imports of Pellets to Kandla are not viable and have fallen drastically due to depreciating Rupee and users of Pellets are therefore looking to make purchases from Indian market.

Also, buyers in Chennai have preferred to purchase the material from Odisha as landed cost is lower in comparison to offers being quoted by Bellary based manufacturers.

Pellet makers based in Keonjhar (Odisha) and Tatanagar (Jamshedpur) are also in talks with overseas parties and it is expected that a couple of deals might be closed in the current week itself.

Domestic Pellet offers:

Barbil: 6,200

Keonjhar: 6,100-6,300

Jharsuguda: 6,600

Raipur: 7,500

Tatanagar: 6,400

Bellary: 6900-7100

Basic prices in Rs/MT

Though, manufacturers are able to sell out their material in domestic market, buyers have come down in terms of volume purchases as Sponge iron prices are not picking up and Iron ore lumps prices are on the lower side.

Pellet makers are looking forward to wind up export deals owing to better realizations.

As Fe 63.5/63 Iron ore fines prices in Chinese spot market have moved up by US$11/MT in the last one week, Indian Pellet makers are anticipated to receive higher prices for export orders yet to be finalized.

For more details, contact

Seema Goenka

(seema@steelmint.com)