Indian pellet export offers are on an upward trend due to strong demand from the Chinese market. Indian pellet exporters have got an excellent opportunity to export pellet substantially owing to increased pellet premium and better realization in exports.
Currently, pellet export offers are hovering at USD 90/MT, CFR China for Sept’16 deliveries. In addition, Indian pellet export offers will come around USD 89/MT, CFR China for October shipment deliveries.
SteelMint assessment for pellet exports for Fe 64.5 – 65% is around USD 82 – 82.5/MT, FoB India for Sep’16 shipment. And for Oct shipment deliveries, it will come around USD 81-82/MT, FoB India.
Indian pellet exporters are actively participating in the race of exports. JSPL, Essar Steel, BRPL are the key Indian pellet exporters. In addition Rashmi Metaliks & Arya Iron & Steel has also concluded pellet exports deals with China.
As there is improved demand from China due to the restriction imposed by Chinese government to use sinter as raw material feed, Chinese steel mills chasing high-grade ore to meet environmental standards.
In addition, pellet premium has touched all time high levels at USD 32/MT which is one of the major factor behind better realization for Indian pellet exporters. However, Indian pellet fetches premium lower by USD 2/MT owing to low silica-alumina ratio.
JSPL-lined up around 6 pellet export vessels to China – sources
Odisha-based merchant pellet manufacturer, Jindal Steel & Power Limited (JSPL), has lined up around 6 vessels for Sept’16 deliveries. All shipments are likely to be exported to China.
It is to be noted that JSPl, turned out to be the largest Indian pellet exporter starting FY17. The pellet maker has exported around 0.7 MnT pellet till Aug’16.
Following JSPL, BRPL exported 0.5 MnT and Essar Steel exported 0.29 MnT pellets till Aug’16.
Trade-wise:
- Kolkata-based pellet maker concluded last deal at around USD 75-76/MT, CFR China last month.
- East based pellet maker has also concluded a deal at around USD 80/MT, CFR China last month.
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