Jindal Steel & Power Limited (JSPL) – India’s largest pellet exporter is seen offering pellets for export.
JSPL is offering 50,000 MT pellet for exports for which shipment is scheduled to take place after 15 Feb’18. JSPL continued to be the largest exporter for the duration of CY’17 with exports at 1.98 MnT, accounting for 20% share in total pellet exports from India.
Last week, KIOCL concluded a deal for around 55,000 MT pellet (Grade Fe 64%) export to China at around USD 118-119/MT, CFR China for Feb end shipment. The bids were realized at price higher than other exporters, over its specifications like lesser Alumina content which is around 1.5-2%.
Towards the beginning of last week, another Indian pellet exporter was heard to have concluded a deal of 50,000 MT pellet export to China for Mid Feb shipment at around USD 116.5-117/MT,CFR China.
The growing interest in exports is owing to softening domestic pellet prices, amid reduced buying interest and limited trades.
The pellet premium last week witnessed a decline of about USD 1/DMT, with premium at USD 43.10/DMT in the beginning of week and at USD 42.10 /DMT towards the end of the week.
Indian Pellet Exports surge by 67% Y-o-Y in CY’17
Indian pellet exports have seen a marked rise of 67% Y-o-Y to 9.68 MnT in CY’17 as against 5.79 MnT in CY’16. Indian pellet exports have increased sharply amid increased Chinese demand post-Samarco disruption. Post Samarco disaster, Chinese steel mills shifted to India to source pellet leading to increased exports from India. Also announced steel production cuts by Chinese govt. forced the steel mills to go for high-grade material (like pellets) resulting in improved pellet demand. China accounted 84% of total Indian pellet exports in CY’17.
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