State owned KIOCL and 100% export oriented unit (EoU) is to export iron pellets to China. This is the second pellet shipment to China and overall company’s third shipment in FY16.
A vessel named “ Asia Zircon II” carrying 51,000 MT pellets (Fe 64%) is about to reach China by first week of Mar’16. KIOCL is currently operating 3.5 MnT pa pellet plant in Mangalore.
If we talk about global pellet prices, around 2 weeks ago, global pellet prices for (Fe 64/63%) were hovering in the range of USD 57-58/MT, CFR China, and the deal may have also concluded within the same range.
As per market sources, currently the company is at wait-and-watch situation to see how the market in China moves post Chinese holidays. However, for next shipments to China, the company will make further decision depending upon the outlook of the global market.
KIOCL’s Pellet export shipments in FY16
| Date | Vessel Name | Quantity | Country |
| 16-Jan | Aries | 65,500 | Iran |
| 29-Jan | Dorado | 54,000 | China |
| 12-Feb | Asia Zircon II | 51,000 | China |
Quantity in MT
Provisional data
Source: SteelMint Stats, Customs
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