India: Rashmi Metaliks Conclude Pellet Export Deals to China

West Bengal (East India) based pellet maker - Rashmi Metaliks concluded two pellet export deals to China recently. As per sources, deal concluded is for vessels containing 55,000 MT pellets each having grade Fe 64% & around 3% alumina. As per sources, the deal has been concluded at USD 110/MT, CFR China for Feb laycan. Vessel freight from India east coast to China is around USD 9/MT.

SteelMint's Indian pellet export price assessment has come down this marginally as it was around USD 111-113/MT, CFR China last week.

Last week, Godawari Power & Ispat concluded an export deal of 50,000 MT pellet for Fe 64% (+/-.5%) with 2% alumina from Gangavaram port.

Indian pellets export offers have observed a downtrend amid less demand in China. Buying interest from Chinese mills remains subdued on rising port inventories of iron pellets at dockside.

Indian pellet exports dropped 15% in CY18- According to the customs data maintained with SteelMint, Indian pellet exports have marked a decline of 15% Y-o-Y to 8.19 MnT in CY'18 as against 9.68 MnT in CY'17.BRPL stood the largest exporter for the duration of CY'18 with exports at 2.03 MnT (up 14% Y-o-Y), accounting for 25% share in total pellet exports from India. Though the pellet complex has a nameplate capacity of four MnT p.a., it was operating at lower capacity levels in past years, but the new promoters are making efforts to increase its capacity utilization.JSPL recorded pellet exports at 1.61 MnT followed by KIOCL at 1.51 MnT, Rashmi Metaliks at 0.98 MnT and Essar Steel at 0.86 MnT.

Spot pellet premium decreased by USD 3.3/DMT W-o-W -: Spot pellet premium for Fe 65% grade pellets assessed currently at USD 41.6/DMT, CFR China, down by USD 3.3/DMT W-o-W against USD 44.9/DMT a week before.