Rise in global iron ore prices and growing demand from Chinese steel mills has drove up Indian pellet export offers. As per trade sources report to SteelMint, an Odisha (east India) based pellet exporter has concluded an export deal last week for around 50,000 MT at around USD 92-93/MT, CFR China. The pellet maker shared that “We have booked around 4-5 vessels to be shipped in Jul’17”.
SteelMint’s assessment for Fe 63% pellets are at USD 92-94/MT, CFR levels. Pellet premium for Fe 65% grade is at USD 28/MT, CFR China.
Raipur Pellet Offers Up by INR 300/MT-Central India pellet offers seen up by INR 300/MT W-o-W. SteelMint assessment for Fe 63% pellets is at INR 5100-5200/MT.(Basic, GST@5% extra). The price hike can be attributed to the increased inquiries along with a slight rise in demand.
However the domestic pellet market in east has been stable without any major activity.
Indian Pellet Reference Prices as on 07 Jul’17
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 3,900-4,100 |
| Jamshedpur | 63 | 4,000-4,100 |
| Jharsuguda | 63 | No offers |
| Durgapur | 63 | 4,300-4,600 |
| Raipur | 63 | 5,100-5,200 |
| Bellary | 63 | 5,900-6,000 |
*loaded to wagons
**delivered
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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