KIOCL, a state owned and 100% export oriented unit (EoU) is to export Iron Pellets to China.
A vessel named “ MV Dorado” carrying 54,000 MT pellets (Fe64%) is expected to reach Mangalore Port by the end of this month. KIOCL is currently operating 3.5 MnT pa pellet plant in Mangalore.
Apparently, this is the company’s second pellet export shipment in a month time. The first shipment carried 65,600 MT was exported to Iran in the first half of Jan’16.
As per SteelMint analysis, around a month back the global pellet prices for Fe 64/63% were assessed in the range of USD 55-56/MT CFR China, which is now hovering at USD 57/MT CFR China. So, according to our analysis, the above deal would have also concluded in the same range.
Talking about domestic pellet market, South India based some pellet makers have reduced their offers to INR 4,150-4,200/MT (basic).
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