MSP Steel & Power Ltd, an Iron Pellet producer located in Kolkata (West Bengal) has concluded its second deal for 30,000 tonnes of Pellet in the current week.
The deal has been concluded at INR 7,100/MT (ex plant) with freight charges of INR 1,650.
Shipment of the material will take place from Paradip Port in the month of October, which is expected to be completed by the 20th.
Netincon Marketing Private Limited located in Kolkata (West Bengal) is again, buyer of MSP's material.
Company officials were not available for discussion around the same.
MSP is yet to complete its first shipment and Netincon will be shipping the material to Hebei Iron and Steel Group Limited in China.
Netincon will be using Kolkata based Haldia Port (20,000 tonnes) and Sagar Anchorage (10,000 tonnes) to ship the second vessel to an end user.
It is in talks with Chinese buyers for the same and is offering the material at around USD 147/MT FoB as about 3 dollars of logistics cost will be borne by the trader.
MSP Steel has a total installed capacity of 0.9 MnT pa for producing Pellets i.e. 0.3 MnT pa plant in Jharsuguda (Odisha) and 0.6 MnT pa plant in Raigarh (Chhattisgarh), with outsourced Iron ore.
It using Pellets for merchant sales and captive consumption for its 0.3 MnT pa Sponge iron plant in Raigarh (Chhattisgarh).
Jindal Steel and Power Limited (Barbil) continues to hold domestic Pellet sales and is using Gangavaram Port to transport the material, for an export deal concluded in the second week of August.
On September 27, a vessel MV Montecristo containing 54,346 tonnes of Jindal's Pellet is expected at Gangavaram Port.
Another vessel MV Mycenae with 55,000 tonnes of Pellets is also expected at the Port; there is no confirmation about the expected date.
Though, the cost of transportation is higher by Rs 300-400/MT, the exporter is looking into fulfillment of commitment made to a Chinese buyer.
Essar Steel Limited (Paradip) might not conclude any export deal in Pellets in the near future as it is facing issues with Railways around freight charges.
Pellet prices in Indian market remain stable as demand from Sponge iron units is low.
Domestic Pellet prices (Rs/MT):
Raipur: 8,500
Paradip: 7,250
Keonjhar: 7,200
Bellary (Karnataka): Rs 7,300-7325/MT
6,400 (Fe 60)
Basic
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