As per market sources report to SteelMint, Chinese inquiries for Indian pellet has increased this week. However reference pellet price assessment is at around USD 110-111/MT, CFR China levels for regular grade pellet with 3% alumina.
Tangshan in Hebei province has ordered steel mills and other industrial plants last week to make additional output cuts on top of those already ordered during the winter heating season. The steel mills in city will be required to shut their sintering capacity by 30-60% or even shut down based on their emission level, while coke plants must extend production time in order to churn out less dust.
The pellet export assessment has increased slightly this week owing to strict environmental norms in China. Lump premium have picked up this week to 0.3721/DMTU as against USD 0.3200/DMTU last week. The mills in Tangshan have increased preference for pellets amidst costlier lump.
Indian pellet makers reported increase in number of inquiries from Chinese mills this week compared to last few weeks.
A week back, Jindal Steel & Power had concluded an export deal to China for around 50,000 MT for regular grade pellets (Fe 64%, containing 3% alumina) at around USD 110/MT, CFR China.
Spot pellet premium drop as fines index moves up
Spot pellet premium for Fe 65% grade pellets assessed at USD 45.85/DMT, CFR China this week, down by USD 3.25/DMT W-o-W against USD 49.10/DMT /DMT a week before. The pellet premium has picked up this week amidst increase in iron ore prices W-o-W. The iron ore prices this week are assessed at USD 70.40/MT, CFR China, up by USD 3.25/MT as against USD 67.15/MT, CFR China, last week.
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