According to market sources report to SteelMint, an east India based pellet manufacturer, concluded a deal for 50,000 MT to China at around USD 116-117/MT, CFR China. As per sources the deal was concluded a week ago.
Another major Indian pellet exporter was heard to offer 50,000 MT but the deal is still under negotiations and has not been concluded yet. Few pellet makers are eyeing for levels of USD 119-120/MT, CFR China. Spot pellet premium for Fe 65% grade is assessed at USD 48.5/DMT, CFR China.
Buying interest from Chinese steel mills was learnt to be at lower levels than current offers quoted Indian pellet makers as they were considering making pellets out of imported concentrates a more cost effective measure.
However, Indian pellet export offers are likely to remain firm and downside looks limited as the prices of imported concentrate have increased to USD 92-93/MT, CFR China. Thus the landed cost of pellet manufactured out of it stands around USD 115-116/MT. This has reduced price gap between the two which may result in resumption of buying interest for Indian pellets.
Domestic Pellet Market overview – Domestic pellet offers in India remained mostly stable this week. Central India (Raipur) based pellet makers have kept pellet offers unchanged at INR 6,000/MT (basic). Few pellet manufacturers reported deals to have concluded at around INR 5,900/MT (basic).
Indian Pellet Reference Prices as on 12 Dec’17
|
City |
Grade (Fe %) |
Basic Prices in INR/MT |
| Barbil* | 63 | 5,400 |
| Durgapur | 63 | 6,100 |
| Raipur | 63 | 5,900-6,000 |
| Jharsuguda | 63 | 5,800 |
| Jamshedpur | 63 | 5,500-5,600 |
| Bellary | 63 | 6,400 |
*Loaded to Wagon
Prices (GST extra) mentioned are for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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