India: BRPL Concludes 54,000 MT Pellet Export Deal to China

East India based pellet maker-Brahmani River Pellets has concluded pellet export deal of 54,000 MT to China last week. As per sources, the vessel named "MV Yuan Ping" carrying a quantity of around 29,100 MT pellets (Fe 64%) and 24,900 MT pellet chips are expected to arrive at India's Paradip port for loading on 24th Jan'19. As per sources, the deal has been concluded at USD 100/MT, FoB India for pellets and USD 52/MT, FoB India for pellet chips. Current vessel freight rate from India to China is around USD 9-10/MT.

Earlier in this month Godawari Power & Ispat, Jindal Steel and Power (JSPL) concluded export deals and Rashmi Metaliks concluded two pellet export deals to China last week.

BRPL remained the largest pellet exporter in CY18 - According to the vessel line up data maintained with SteelMint, BRPL stood the largest exporter for the duration of CY'18 with exports at 2.03 MnT (up 14% Y-o-Y), accounting for 25% share in total pellet exports from India..JSPL recorded pellet exports at 1.61 MnT followed by KIOCL at 1.51 MnT, Rashmi Metaliks at 0.98 MnT and Essar Steel at 0.92 MnT.

BRPL, co-owned by Thriveni Pellets Pvt Ltd and JSW Techno Projects Ltd. BRPL is looking at revamping and redesigning of its plant. Though the pellet complex has a nameplate capacity of four MnT p.a., it was operating at lower capacity levels in past years, but the new promoters are making efforts to increase its capacity utilization.

Spot pellet premium decreased by USD 2.1/DMT W-o-W -: Spot pellet premium for Fe 65% grade pellets assessed at USD 39.5/DMT, CFR China last week, down by USD 2.1/DMT W-o-W against USD 41.6/DMT a week before.