An East India based exporter confirmed that the company recently floated a pellet export tender to China with the expected bids at around USD 100/MT CFR, China but received around USD 99/MT CFR, China. The official confirmed that they are yet to close the deal as the company is still negotiating for expected levels.
The stated exporter has concluded the previous deal at USD 97/MT CFR, China mid of July’17. The upward movement in Chinese market has pushed the Indian pellet export prices by USD 2/MT.
According to SteelMint’s assessment Indian pellet (Fe64/63%) export offers are at around USD 99-100/MT, CFR, China currently. Freight is also increased from Dhamra to USD 9-9.5/MT. FoB prices are around USD 90-91/MT.
The source stated that, they were planning to sell 2 cargoes, but now may go for one 50,000 tonne vessel. The demand for lump & pellets in China is good and is likely to remain strong till Sept as Chinese steel mills are giving preference to high grade ore due to higher coking coal prices, he stated.
Currently pellet premium, Fe65% has increased marginally by USD 0.5/MT W-o-W to USD 30.5/MT CFR, China.
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