An East India based pellet producer has recently concluded an export deal of 50,000 MT high grade (Fe 64%) pellets to China at higher price as compared to previous one owing to rise in global iron ore prices.
According to market sources, the deal has been concluded at $ 101-102/MT, CFR China, which is higher from last deal at $ 91-92/MT, CFR China concluded in the last week of Oct’16. Considering vessel freight from India to China around $ 7-8/MT, FoB price will would come to $ 94-95/MT.
It should be noted that currently Indian pellet is selling at a discount up to $4/MT on spot pellet premium. Spot pellet premium is currently at $29.5/MT and Indian pellet is selling at $ 25-26/MT due to the ratio of high silica/alumina .
Pellet exports from India have been witnessing momentum since beginning of this fiscal over increased demand from China and better realization in exports.
Pellet export offers have also moved up significantly on monthly premises amid sharp increase in spot pellet premium.
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