Strong Chinese demand for high grade pellets along with high spot pellet premium and better realization in exports has given opportunities to Indian pellet exporters. Indian pellet exports are likely to cross 1 MnT mark which is the first time starting FY17.
In Nov’16, (till 21 Nov’16), total 0.8 MnT pellets has already been exported. The majority of pellets is exported to China (around 80%) and rest to Japan and Oman.
Major Indian pellet exporters who are active in the pellet export and exported in the month of Nov’16 (till 21 Nov’16) are JSPL (0.14 MnT), BRPL (0.18 MnT), KIOCL (0.12 MnT), Bagadiya Brothers (0.13 MnT), Essar Steel (0.15 MnT), Arya iron & Steel (0.05 MnT) and Rashmi Metaliks ( 0.08 MnT).
It should be noted that Indian pellet exports in FY17 (till Oct’16) is recorded at 3.5 MnT, which is highest since 2006 . In FY16, Indian pellet exports was recorded at 0.83 MnT.
Pellet export offers also moved up significantly on monthly premises amid sharp increase in spot pellet premium. Current pellet export offers are hovering in the range of $99-100/MT, CFR China. It is to be noted that, recently one of the major East India based pellet maker has also concluded an export deal of around 50,000 MT high grade pellets to China at $ 100/MT, CFR.
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