India: KIOCL Concludes 50,000 MT Pellet Export Deal

Southern India based pellet maker - KIOCL has concluded pellet export deal for 50,000 MT as per reliable sources report to SteelMint. Deal for 50,000 MT pellet consisting of Fe 64% grade pellets with less than 2% Al was reported to be concluded at USD 109/MT, FoB India for March dispatches.

The price is slightly lower against company's last tender concluded in Feb'20 at around USD 111.5/MT, FoB.

However for standard grade pellets (Fe 64%, 3% Al) recent indications are at around USD 116-118/MT, CFR China.

SteelMint reported last week that an Odisha (eastern India) based pellet maker has concluded two pellet export deals for 50,000- 55,000 MT each of Fe 64% grade pellets with 3% Al. The deal was concluded at around USD 118/MT, CFR China for early April shipment.

Last week, spot pellet premium for Fe 65% grade pellets was assessed at USD 29.70/MT, CFR China as against USD 32/MT, CFR China a week back. Pellet premium witnessed a fall amid a shift towards comparatively less expensive products. This is because the end-users are not willing to pay a premium for improved efficiency at this point in time.

Yesterday spot iron ore fines (Fe 62%) index jumped by over USD 4 to USD 91.4/MT CFR China on indications of tight supplies from Brazil over rains.