Indian pellet export prices cross over USD 100/MT.
Indian pellet export offers continue to move up on rising Chinese spot iron ore prices and demand for high grade pellets.
Indian pellet export offers have crossed over USD 100/MT CFR China. According to market sources a deal of around 50,000 MT is expected to get concluded at around USD 101-102/MT CFR China for 64% Fe. This is equivalent to USD 92-93/MT FOB India main port. The price of USD 102/MT, CFR China was last seen in the month of Feb’17.
Last week, Jindal Steel heard to have sold one pellet parcels of 50,000 MT at around USD 99.5/MT CFR China for August loading.
Indian pellets exports during Jan-Jun 2017
According to customs data maintained with SteelMint, Indian pellet exports during Jan-Jun’17 were recorded at 4.34 MnT against 1.05 MnT in the same period last year. Out of 4.34 MnT pellets exported from India during Jan-Jun’17, nearly 80% of the pellets were exported to China.
Why are Indian pellets preferred?
As per recent reports, Samarco may take the remainder of 2017 to resume operations due to one of the main approvals are awaited along with the work in progress for another important license. It is to be noted that the pellet production from Samarco was 12.05 MnT and 12.31 MnT in 2014 and 2015 respectively.
Amid less pellet supply from Brazil and rising demand for high grade material in China, Indian pellets are being preferred by Chinese steel mills. Steel mills in China are preferring usage of pellets or lump to cut down the production cost owing to costly coking coal. This has further supported demand for Indian pellets.
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