India: KIOCL Concludes 50,000 MT Pellet Export Deal

Southern India based pellet maker - KIOCL has concluded pellet export deal for 50,000 MT pellets consisting of Fe 64% content with less than 2% alumina. As per the sources, the deal was concluded at around USD 98/MT, FoB India. Towards beginning of the month the company had Concluded deal for similar quantity at around USD 94/MT, FOB India.

Towards end of last week, SteelMint reported that Indian pellet export prices are likely to remain supported on falling Chinese port stocks. SteelMint's pellet export assessment for regular grade (Fe 64% and 3% Al) pellet stands at USD 105/MT, CFR China (equivalent to USD 94-95/MT, FoB India).

Indian pellet exports have depicted a forward push this week amid rising Chinese demand caused due to increase in winter production curbs. The pellet exports market is further expected to remain supported due to stringent environmental controls, higher steel margins and falling port inventories.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 130.35 MnT as against 131.75 MnT assessed towards the end of last week. Pellet inventories were reported at 6.9 MnT this week against 7.25 MnT towards last weekend.

Towards the beginning of the week, an Odisha based pellet maker had concluded pellet export deal for Fe 64% grade and, 3% Al at China at USD 103/MT, CFR China.

Spot pellet premium down 23% W-o-W:
Spot pellet premium for Fe 65% grade pellets dropped sharply to USD 20.85/dmt, CFR China as against USD 27.05/dmt, CFR China assessed last week. The pellet premium has witnessed a fall amid rising fines prices.

Chinese spot iron ore prices up during the week:
Chinese spot iron ore prices opened up this week at USD 85.10/MT,CFR China and increased to USD 86.65/MT, CFR China assessed yesterday (20th Nov).