Indian pellet export prices have moved up by USD 5 in recent deal concluded. As per market sources report to SteelMint, an Odisha based pellet maker has concluded pellet export deal for around 55,000 MT pellet to China. The deal is heard to have concluded for end Feb’20 shipment at around USD 126-127/MT, CFR China for Fe 64% pellets with 3% Al. Hence, pellet export price assessment have depicted rise this week against USD 121-122/MT, CFR China towards last weekend.
Few Chinese domestic pellet producers were heard to have stopped production due to upcoming Lunar New Year holidays starting from 24th Jan’20. Besides, the strict environmental controls affected domestic supply.
Two other deals were herad to have concluded towards mid of Jan’20. One of the significant pellet makers from West Bengal claimed that they have concluded pellet export deal for 55,000 MT (Fe 64%, less than 3% Al) at USD 123/MT CFR China . Also, an east India pellet maker concluded pellet export deal for 58,050 MT (Fe 64%, 2.5% Al) at USD 120/MT CFR China.
Spot pellet premium increased 18% W-o-W:
Spot pellet premium for Fe 65% grade pellets assessed at USD 35.5/MT, CFR China as against USD 29.9/MT, CFR China last week.
As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 127.05 MnT as of 22nd Jan’20 as against 127.35 MnT assessed a week before. Pellet inventory at major ports dropped to 4.1 MnT as on 22nd Jan, down 0.2 MnT W-o-W against 4.3 MnT last week.
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