India : KIOCL Concludes 50,000 MT Pellet Export Deal

Southern India based pellet maker - KIOCL has concluded pellet export deal. The company had floated export tender offering 50,000 MT pellet consisting of Fe 64% content and less than 2% alumina. However, amid lower bids received, the company has concluded the deal going off the tender.

As per the sources, the deal was concluded at around USD 132/MT, FoB India.

Towards mid of Oct'18, KIOCL had floated an e-tender for export of 50,000 MT pellets (Fe 65%/64%, less than 2% Alumina). According to market sources report to SteelMint, the highest bid received was at USD 139-140/MT, FoB.

Amidst uncertainty on sintering and production cuts in the Chinese market, Chinese mills are preferred fines over pellets resulting in limited inquiries for pellet export. Indian pellet export prices fell by USD 10/MT in last two weeks.

Spot pellet premium fell further USD 1/DMT on increased Chinese domestic pellet supply

Spot pellet premium for Fe 65% grade pellets assessed at USD 71.35/DMT, CFR China this week, down by USD 1/DMT W-o-W against USD 72.35/DMT a week before. Imported pellet buying interest of Chinese mills was learned to remain weak amid increased supply of Chinese domestic pellets, resulting in less pellet export trades from India.

KIOCL's domestic pellet tender also received dull response- Along with the export tender, the company had floated another tender for domestic sale via sea for 50,000 MT and also by road in lots of 2,000 MT. Both the tenders were heard to have received lower participation.