In week 37, Pellet Premium for Fe 65% BF grade pellets is assessed at USD 34.3/DMT. Pellet premium remained stable as compared to week 36.
Since Oct’15 pellet premium rose continuously as Chinese steel makers opted for high-grade pellets or lumps in order to meet the environmental standards. Also, Samarco’s disruption has impacted pellet imports in China.
It is to be noted that high pellet premium and export realizations have encouraged Indian pellet exporters to export more pellets to China as the demand for pellets is higher in China.
Pellet inventories at major Chinese ports are at 3.3 MnT in Week 37, down by 8.3% as it was 3.6 MnT in Week 36. Seaborne pellet inventories are decreasing continuously.
Spot lump premium down by USD 0.004/MT W-o-W
In week 37, spot lump premium moved down marginally by USD 0.004/MT and witnessed at USD 0.187/MT.
Seaborne lump inventories at Chinese major ports were recorded at 12.55 MnT in week 37, up by 1.6% as it was 12.35 MnT in Week 36.
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