India: KIOCL Concludes 50,000 MT Pellet Export Deal
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Indian pellet makers have booked around 400,000 MT for exports this week.
Indian pellet export trades have resumed this week. In another recent deal, southern India based pellet maker - KIOCL has concluded a pellet export deal for 50,000 MT yesterday (i.e 15th May), as per SteelMint sources. The deal for pellets having a specification of Fe 64% grade pellets with 2% Al has been concluded at around USD 100/MT, FoB India for May dispatches. As per the sources freight to China has also been increased to USD 9-9.5/MT recently due to the congestion at port and increased export cargoes.
Towards the end of last month, KIOCL had concluded a pellet export deal for 50,000 MT of Fe 64% grade pellets with 1.8% Al at USD 94.5-95/MT, FoB India for May dispatches.
SteelMint assessment for Fe 64% grade pellets with 3% Al increased sharply by around USD 8/MT on a weekly basis to around USD 107-108/MT, CFR China against USD 99-100/MT, CFR China. Current export offers rose to almost 2-month high over the third week of Mar'20.
India pellet export offers increased sharply following a sharp increase in spot iron ore fines price from the beginning of this week. In this week, spot iron ore price for Fe 62% grade increased significantly on 15th May by USD 7/MT to USD 93.25/MT, CFR China as against USD 84/MT, CFR China a week back.
According to SteelMint, nearly 355,000-4,00,000 MT pellet export deals have been concluded so far this week.
| Supplier | Grade | Quantity (MT) | Price USD/MT, FoB/CNF | Shipment Date/Destination |
| KIOCL | Fe 64%, Al 2% | 50,000 | 100 (FoB) | End May'20 |
| Odisha Pellet Maker | Fe 64%, Al 2.8% | 50,000 | 108 | Jun'20, China |
| Odisha Pellet Maker | Fe 64%, Al 2.8% | 50,000 | 108 | End May'20, China |
| Jindal SAW | Fe 63% | 50,000 | 107 | Malaysia |
| West Bengal Pellet Maker | Fe 64%, Al 3% | 50,000 | 108 | N/A |
| Raipur Pellet Maker | Fe 64%, Al 3% | 100,000 | 104-105 | Jun'20, China |
Source- SteelMint Research
As per the SteelMint sources, apart from the deal shown above a renowned pellet trader has also procured around 90,000 MT pellets for export from Odisha at INR 5,350-5,500/MT (loaded to wagon basis) this week.
