As reported earlier, Indian pellet exports are gaining momentum owing to rising demand from China. Indian exporters have got better realization in exports due to high spot premium as compared to domestic market.
Recently, few deals have heard to be concluded; Essar Steel, one of the largest pellet exporters has recently concluded an export deal with China via tender. The pellet exporter has concluded an export tender of 100,000 MT (Fe 64/65%) pellets. According to market sources, the deal has been concluded within range of USD 97-98/MT, CFR China.
Another deal has also been concluded by an East India based pellet manufacturer. The pellet maker has offered 40,000-50,000 MT pellets to China via tender a week earlier. According to sources, the tender has been concluded at USD 97/MT, CFR China.
SteelMint assessment for Fe 64.5-65% pellet exports is around USD 87-88/MT, FOB India for Jan’16 shipments. Vessel freight from India will be around USD 9-10/MT.
It is to be noted that Indian pellet exports had registered at USD 5.5 MnT in FY17 (Apr-Dec’16), which is nearly 800% higher as it was 0.61 MnT during the same time period last year.
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