India’s KIOCL Concludes 50,000 MT Pellet Export Deal – Sources

SteelMint learned from market sources that southern India based pellet maker – KIOCL has recently concluded a deal for 50,000 MT pellets via limited tender. As per sources the deal has been concluded at USD 105/MT, FoB basis.

However the destination of the cargo could not not be confirmed at the time of publishing this report.

As per reports received, the material offered was of grade Fe 64%. KIOCL generally produces pellets having Alumina content 2%, Sulphur – 0.01%, Phosphorous – 0.045%. The pellets have tumbler index of 92% and Abrasion index of 6%.

KIOCL pellet production increased 59% in FY’18 –

KIOCL pellet production and sales for FY’18 recorded a significant increase on yearly basis. The production witnessed at 2.32 MnT, up by 59% Y-o-Y as against production in FY’17, recorded at 1.46 MnT. The company’s pellet sales recorded a prominent rise to 2.30 MnT in FY’18, up 65% Y-o-Y as against 1.39 MnT in FY’17.

In FY’18, KIOCL pellet sales in domestic market have recorded a steep rise of 73% to 0.85 MnT. Besides, the company has also increased exports to 1.45 MnT (up 63% Y-o-Y) and has entered into markets of South Korea and Japan.

Bids from Chinese mills remain lower than present offers –

Indian manufacturers are eyeing for levels of around USD 110-111/MT, CFR China for Indian origin (Fe 64/63%) pellets. However bids from Chinese mills are heard to be on the lower side of USD 106-107/MT, CFR China.

Spot pellet premium for Fe 65% grade has edged up this week to USD 44.4/DMT, CFR China, up by USD 0.4/DMT W-o-W.

Indian Pellet export Surge 8% Y-o-Y in FY’18 –

Indian pellet exports have increased 8% to 8.96 MnT in FY’18 against 8.26 MnT in FY’17. JSPL stood the largest exporter for FY’18 at 1.92 MnT, (21% of total pellet exports share). BRPL stood second highest exporter at 1.70 MnT, followed by KIOCL and Essar Steel. Other exporters were Rashmi Metaliks, Bagadiya Brothers, Arya Iron & Steel, and Jindal SAW.

Indian pellet exporters are hopeful that Chinese mills may raise their bids amid falling iron ore stocks with the mill. As per reports, small steel makers in China have low iron ore stocks and are likely to resume purchases shortly.