Indian pellet exports are gaining momentum. Favorable global market conditions and increased global iron ore prices have turned Indian pellet manufacturers active for exports of pellet.
Recently, two pellet export shipments of namely BRPL and JSPL are in pipeline now for this month. Also, two more export shipments are lined-up by JSPL for next month.
One of the merchant pellet manufacturer, namely JSPL, exported 56,500 MT pellets to Oman (Sohar Port). The vessel named “Evangelia M”carrying 56,500 MT pellet had been exported from Dhamra Port. The shipment had been exported to JSPL’s own steel plant in Oman namely Jindal Shadeed Iron & Steel LLC.
According to sources, JSPL lined up one more shipment of pellet carrying 60,000 MT pellets to China in Apr’16. The deal had been tentatively concluded between USD 73-75/MT, CFR China. Meanwhile, the pellet maker also concluded deal for two more shipments at the same price for the next month.
Well known Odisha based pellet maker, Brahmani River Pellets (BRPL) exported 54,000 MT pellets to China from Paradip Port in a vessel named “Darya Lakshmi”. According to sources, the deal had been tentatively concluded at USD 63/MT FoB, Paradip. This is the second pellet export shipment of BRPL. Last month, the pellet maker exported 48,000 MT pellets to China and the deal was concluded at USD 59/MT, FoB Paradip Port.
Meanwhile, Pellet premium was assessed at USD 18/DMT, CFR China in week 16 against its previous week’s assesment of USD 16.5/DMT, CFR China. Increase in spot pellet premium for Fe 65% BF grade pellets by 9% W-o-W also dealt with rise in interest of Indian pellet manufacturers to export. Also, in China, due to increased demand for concentrate upon higher margins by Chinese steel mills, pellet buying is gaining some strength.
Coast based Indian pellet manufacturers namely Essar Steel, JSPL, KIOCL, Arya Iron & Steel & BRPL, are currently receiving inquires for export offers. Abolished pellet export duty coupled with increase in lump premium as well as increased global iron ore prices have turned Indian pellet manufacturers active for pellet exports.
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