SteelMint’s weekly pellet export index (FOB east coast India) for Fe 64% grade has moved up by $6/t w-o-w to $196/t in the recent deals. Four confirmed pellet export deals with a total quantity of 200,000 t were recorded by SteelMint in this publishing window.
Chinese steel mills demand for high grade raw material continues to remain robust in order to maintain the lower-emission rate as per the guidelines given by local authorities. However, mills in China are getting decent realization and lucrative profits in finished steel, sources highlighted. Under the production curbs and low emission, it is expected that pellet demand will be strong. However, few traders revealed Chinese still very cautious and may take buying decision in the next few days.
In the confirmed trade recorded by SteelMint, two were concluded from Eastern India (Odisha) and one from Central India based pellet makers. Southern India-based pellet maker – KIOCL has floated a pellet export sale tender for about 50,000 t (Fe 63.5% and Al 2-2.1%). The tender due date is 15th Apr’21 among the empanelled customers. The company’s last tender held towards the beginning of Mar’21 was heard to be concluded at $192/t FoB.
The Indian Rupee depreciation against the dollar is another reason supporting exports. The rupee weakened hit 10-month low to INR 75.135 on COVID concerns.
India pellet export confirmed deals:
Rationale:
- Four pellet export deals were concluded in this publishing window. Out of those two were taken into consideration for price calculation as T1 inputs and kept the weightage of 50% in this index.
- Apart from trades, SteelMint has also received Five (05) indicative prices, offers and bids (T2). All were considered as T2 trades and given weightage of another 50% in this index.
Spot iron ore fines price almost stable w-o-w- Spot iron ore fines Fe 62% price decreased marginally to $172.35/t yesterday as against $ 172.9/t a week before. On a daily basis also prices have decreased around $0.65/t yesterday.
Freight rates dropped further this week- Freight rates for 50,000-55,000t export vessels from east coast India (Paradip) to China decreased to$ 17-18/t against $20-21/t last week.
Pellet inventories at Chinese ports fall- Pellet inventory at major Chinese ports have decreased to 5 mn t last week against 5.25 mn t a week before as per data maintained by SteelHome.
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