Eastern India Pellet Maker Concludes Export Deal to China

According to market sources report to SteelMint, a Durgapur based pellet maker has concluded 50,000 MT pellets export deal to China last week. As per sources, pellet maker has concluded an export deal for regular grade pellet (Fe 64% and 3% alumina) at around USD 106-107/MT, CFR China.

After observing few weeks of silence, Indian pellet export market has observed some movement.

Last pellet export deals reported were towards mid-Sep, by KIOCL for 50,000 MT pellet export deal to China. The deal was for pellet consisting of Fe 64% and 2% alumina at around USD 98/MT, FoB India for immediate September loading. However, with limited bids from Chinese mills, Indian pellet exporters market turned silent.

Amid rising pollution levels in China, government of Tangshan has raised pollution control measures and revised policy for production curbs. As per the amendments made, for long route steel making, falling in Class Sintering machines, pelletizing machines and lime kiln must stop, with an implementation based on production lines. The operation of Blast furnace will limit by 50% and above. Few sources believe that this may increase demand for imported pellets.

But with upcoming Chinese National holidays scheduled in 1st week of October, mills are less active at the moment.

Spot pellet premium increased on weekly basis: Spot pellet premium for Fe 65% grade pellets assessed at USD 17.05/MT, CFR China last week as against USD 12.15/MT, CFR China a week before. Pellet premium has witnessed a hike of around USD 5/MT last week.