India: KIOCL Concludes 50,000 MT Pellet Export Deal to China

Southern India based pellet maker - KIOCL has concluded pellet export deal yesterday (i.e 03rd Sept'19) to China. The company concluded 50,000 MT pellet 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, which will be equivalent to USD 112-113/MT, CFR China.

Last week, JSPL - east India based pellet maker also concluded a pellet export deal to China for Fe 64%, and 3% Al at around USD 108/MT, CFR China for prompt shipment. Another east India based steel maker is learned to have negotiating export deal for non-Chinese markets as well.

As per the SteelMint assessment for the regular grade pellets (Al 3%) export realization stands at USD 92-94/DMT FoB India.

Few Indian pellet trades at Chinese ports were reported at RMB 960/MT.Indian pellet makers are hopeful of demand recovery from China later this week.

Spot iron ore fines Index increased on weekly basis: The global iron ore fines prices (Fe 62%) has increased to USD 89.35/MT, CFR China yesterday (03rd Sept) as against USD 84/MT, CFR China a week back.