Indian Pellet Export Market Remains Silent Amid No Trades

According to market sources report to SteelMint, Indian pellet export market has remained dull this week. SteelMint's pellet export assessment stands stable on weekly basis at USD 105-106/MT, CFR China. However, few bids from Chinese mills were heard at USD 102-103/MT, CFR China levels but no deal is reportedly concluded at such levels.

Amid rising pollution levels in China, government of Tangshan has raised pollution control measures and revised policy for production curbs. As per the amendments made, for long route steel making, falling in Class Sintering machines, pelleting machines and lime kiln must stop, with implementation based on production lines. The operation of Blast furnace will limit by 50% and above. Besides, coking chamber of 6m or above should be prolonged to 28 hours while those below 6m (including) will extend to 36 hours. Few sources believe that this may increase demand for imported pellets.

But with upcoming Chinese National holidays scheduled in 1st week of October, mills are less active at the moment.

Last pellet export deals reported were towards mid Sep, by KIOCL for 50,000 MT pellet export deal to China. The deal was for pellet consisting of Fe 64% and 2% alumina at around USD 98/MT, FoB India for immediate September loading.

Spot pellet premium down sharply W-o-W: Spot pellet premium for Fe 65% grade pellets assessed at USD 12.15/MT, CFR China last week as against USD 15.50/MT, CFR China a week before. Pellet premium has witnessed a drop amid thin demand, easing supply from overseas market and preference for comparatively inexpensive lumps.

Spot iron ore fines (Fe 62%) index stands at USD 89.60/MT, CFR China assessed yesterday (24th Sep'19) as against USD 93.65/MT, CFR China assessed a day before i.e on 23rd Sep'19.