An eastern India based pellet maker had floated an export tender for 52,000 MT high grade (Fe 64%) pellets to China.
According to market sources report to SteelMint, the export tender fetched very good response from the bidders and the pellet making company has concluded the tender as well.
The highest bid received was at USD 91-92/MT, CFR China. Considering vessel freight from India to China to be around USD 6-7/MT, FoB price would come to be around USD 85-86/MT.
In its last floated export tender of 55,000 MT pellets to China in the month of Sept’16, the company received highest bids at USD 86/MT, CFR China.
Pellet exports from India have been witnessing momentum since beginning of this fiscal over increased demand from China and higher export prices.
Pellet export offers have moved up significantly on monthly premises amid sharp increase in spot pellet premium.
Spot pellet premium moves up further amid rising coking coal prices
With consistent uptrend in coking coal prices, Chinese steel mills have turned to use of high grade iron ore/ pellets in order to reduce coking coal and coke usage.
This has further pushed spot pellet premium. Spot pellet premium for BF grade Fe 62% pellets has increased by USD 0.7/MT and is assessed at USD 32/MT, CFR China.
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