India : KIOCL Likely to Extend Pellet Export Tender on Weak Response

As per trade sources report to SteelMint, southern India based pellet maker - KIOCL is planning to extend pellet export deal till Monday (i.e. 19thNov'18) due to dull response received. The company had floated export tender offering 50,000 MT pellet consisting of Fe 64% content and less than 2% alumina export via tender which was expired yesterday.

Earlier at the beginning of Nov'18, 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 had concluded the deal going off the tender at around USD 132/MT, FoB India.

According to the market participants report to SteelMint, bids for Indian pellet have declined further this week. As per sources, bids for regular grade pellets (Fe 64%) with 3% Alumina around USD 120/MT, CFR China down by USD 10/MT W-o-W.

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.

Spot pellet premium fell sharply by USD 8/DMT W-o-W amid falling steel margins

Spot pellet premium for Fe 65% grade pellets assessed at USD 55.8/DMT, CFR China this week, down by USD 8/DMT W-o-W against USD 63.85.35/DMT a week before. High-grade raw materials are trading at a high rate therefore, mills prioritized lowering production costs by preferring low-grade iron ore fine.