Essar Steel Concludes Two Pellet Export Deals to China - Sources

One of India's major pellet exporter - Essar Steel has recently concluded two pellet export deals to China, as per market sources.

The pellet maker has booked nearly 100,000 MT pellets to China for November shipment. As per sources, the deal was concluded at around USD 120.5/MT, CFR China. We tried to contact company officials but they remained unreachable.

The deal price is marginally higher than the last week's export deal price. Last week, Jindal Steel & Power concluded pellet export for about 50,000 MT pellets at around USD 118.5/MT, CFR China.

Spot pellet premium has increased to USD 56.3/MT, CFR China for Fe 65% pellets which was USD 54.7/MT last week.

According to SteelMint stats,Essar Steel exported 0.55 MnT pellets from Apr-Sept'17 and has by far remained India's 4th largest pellet exporter after JSPL, BRPL and KIOCL. In previous fiscal, Essar Steel exported 1.37 MnT pellets.

Pellet demand in China continues to remain strong amid high steel margins and environmental concerns resulting in sintering cuts forcing mills to procure pellets. India has emerged a major source of pellets to China this year after operations interrupted from Brazilian Samarco.