Jindal Steel and Power ltd (JSPL), India’s largest pellet exporter had scheduled its pellet auction today. The material is for end October or early November shipment.
As per market sources, the company received highest bid around USD 118.5/MT, CFR China.
Demand for Indian origin pellets have regained pace in China again this week. Amid announced sintering cuts in order to curb pollution, Chinese steel mills continue to remain active in booking high grade material (pellets and lump).This has resulted in hike in Indian pellet export offers.
Pellet export offers which were assessed at USD 108-109/MT, CFR China last week have moved up this week and are assessed around USD 112-114/MT, CFR for end November shipment. Presently iron ore fines (Fe 62%) index is hovering at USD 62-63/MT, CFR China and pellet premium (for Fe 65%) is around USD 44.5/MT, CFR China.
Prior to this, Jindal Steel’s last tender which was held on 2nd week of September for 50,000 MT before Chinese went for a long holiday of 64% Fe pellets. This tender was settled at 118.5/MT, CFR China.
According to customs data maintained with SteelMint, JSPL exported 0.94 MnT pellets during Apr-Sept’17 with share of 23% Indian pellet exports recorded in FY18 (till Sept’17).
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