In Week 39, Indian pellet export offers for Fe 64.5-65% grade are witnessed at USD 87-89/MT, CFR China.
There has been a fall of USD 3-5/MT in high-grade pellet export prices from USD 93/MT, CFR China in week 38. Prime reason behind the cut in prices was fall in spot pellet premium.
A few of the recent east coast based pellet manufacturers have concluded deal within such range.
SteelMint assessment for Fe 64.5%-65% pellet exports is around USD 80-81/MT, FoB India for Oct Shipments. Vessel freight from Indian east coast will be USD 8/MT.
According to the market sources, pellet premium for spot market has gone down by USD 5/MT in a week time. Currently, pellet premium for Indian grade pellets is assessed at USD 28-29/MT, DMT. However, spot pellet premium for Fe 65% pellets was assessed at USD 31.5/DMT in China, Indian pellet fetches premium lower by USD 2/MT owing to low silica-alumina ratio.
It is to be noted that China has a great demand for pellets until Brazil Samarco’s operation started. It is expected that Brazil Samarco’s operations will start by 2017.
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