Southern India based pellet maker – KIOCL has concluded a pellet export tender for around 50,000 MT consisting of 64% Fe content and less than 2% alumina. According to sources the deal has been concluded at around USD 148/MT, FoB India for October shipment. High grade Indian pellets (with lower alumina content) are becoming a great source of interest for overseas buyers.
Price assessment for regular grade Indian pellets with 3% alumina is learned around USD 148-151/MT, CFR China. The prices are hovering at almost 4 years high. Spot pellet premium for Fe 65% grade pellets is also witnessed rising and is assessed at USD 87.50/DMT, CFR China, up by USD 3.30/DMT W-o-W against USD 84.2/DMT a week before.
Due to strict governmental regulations in China, steel mills prefer high grade ore and mills are heard stocking the material beyond the production needs. Amidst rising demand by Chinese and other overseas buyers (Japan, European and South Korea), accompanied with constraint supply in global market, Indian pellet export prices have seen sharp uptick every subsequent week.
Besides, Chinese winter production cuts are expected to start from 1st Oct this year against 15th Nov last year. This has added to Indian Pellet demand in global market.
Towards end of last month, KIOCL had floated pellet export tender for 50,000 MT with 64% Fe content and less than 2% alumina content. The deal was concluded at around USD 145/MT, FoB India.
KIOCL recorded enhanced pellet sales at 0.53 MnT for Q1 FY’19. Out of the total sales, the company exported 0.39 MnT of pellets while sold the remaining 0.14 MnT of pellets in the domestic market.
KIOCL accounts for 12% of Indian Pellet Exports in Aug’18
The total Indian pellet exports for the month of Aug’18 witnessed at 0.45 MnT, down by 19% on monthly basis as compared to July’18 exports at 0.56 MnT. KIOCL recorded pellet exports at 0.06 MnT in Aug’18, accounting 12% of total Indian exports for the month. However, the exports stood down by 67% on monthly basis.
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