Falling Iron Pellet prices in the eastern part of India and depreciating rupee have given manufacturers an option to look for global market.
Iron Pellet prices in the state of Odisha are hovering at all time low on weak demand and falling steel prices in Indian market.
It was reported that a large Iron Pellet manufacturer based in Odisha has concluded an export deal for around 27,000 tons of Iron Pellet, to be delivered to China.
Vessel is expected to be shipped in the month of August.
Sources said that the deal was done at around US$145/MT CFR China.
Whereas, Iron Pellet prices in Odisha are hovering around Rs 6,100-6,500/MT (Ex works basis).
Iron Pellet buyers located in the southern part of India are preferring to take Iron Pellet from Odisha, as landed cost of the material is cheaper in comparison to current offers standing in the range of Rs 7,000-7,200/MT (basic) in Bellary (Karnataka).
Recently, a shipment of 27,000 tons of Iron Pellet was unloaded at Chennai port, which was loaded from Paradip port (Odisha).
If domestic Iron Pellet prices continue to remain low, other manufacturers will also look for global buyers.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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