India: KIOCL Pellet Export Tender Fetches Bid Lower by USD 8

Southern India based pellet maker - KIOCL had floated a tender for pellet export for around 50,000 MT consisting of Fe 64% content and less than 2% alumina. According to sources, the tender received the highest bid at around USD 132/MT, FoB India. However, confirmation of tender getting concluded was not received from company officials till the time of publication of this report.

Towards mid of Oct'18, KIOCL had floated an e-tender for export of 50,000 MT pellets (Fe 65%/64%, less than 2% Alumina). According to market sources report to SteelMint, the highest bid received was at USD 139-140/MT, FoB.

Sentiments in Indian pellet export market continue to remain weak. Amidst uncertainty on sintering and production cuts in the Chinese market, Chinese mills are seen showing preference to fines than pellets. A sharp hike in iron ore fines prices observes led the spot iron ore fines prices touched 8-month high. This resulted in decline in bids for imported pellets after dull sentiments prevailing amid Golden week holidays. Indian pellet export prices fell by USD 10/MT in last two weeks.

Last week, Indian pellet export market witnessed 4 trades from JSPL, BRPL and Essar Steel. Assessment for Fe 64% pellets with 3% Alumina stood at USD 137/MT, CFR China.

Spot pellet premium fell USD 1.75/DMT W-o-W

Spot pellet premium for Fe 65% grade pellets assessed at USD 72.35/DMT, CFR China this week, down by USD 1.75/DMT W-o-W against USD 74.10/DMT a week before.

KIOCL pellet exports up two folds in Sep'18

KIOCL total pellet exports for the month of Sep'18 witnessed at 0.11 MnT, up almost two folds on monthly basis as compared to Aug'18 exports at 0.06 MnT.

KIOCL accounts for 20% of Indian Pellet Exports in H1 FY'19: KIOCL recorded pellet exports at 0.74 MnT for H1 CY18, contributing 20% of total Indian pellet export share.