Indian Pellet Export Market Resume at USD 100/MT CFR, China: Prices Hit 5 Months Low

Amid extended lockdown period, subdued domestic pellet bookings and lowered steel output, has resulted Indian pellet makers to explore export options. Sources reported that there were the large number of pellet cargoes available for export from India and overseas, due to steel capacity cuts announced in Europe and other countries.

SteelMint has learned from the sources that, an eastern India based pellet maker concluded a pellet export deal for 50,000 MT pellets Fe 64% grade with 3% Al. The deal was reported to be concluded at around USD 101-102/MT, CFR China.

SteelMint assessment for pellet (Fe 64%, 3% Al) exports stands around USD 100-101/MT, CFR China levels, down by USD 4-5/MT W-o-W as against last week assessment at USD 105-106/MT, CFR China.

In the last one week's time, pellet offers were reported from AM/NS, KIOCL, Rashmi Metaliks, and few other eastern India based plants. Others having their dispatches pending for previous orders and they are not very keen to deal currently.

As per the SteelMint sources, low-grade iron ore demand is gaining an edge over pellets in China owing to lower steel margins.

Spot pellet premium declined USD 3/MT W-o-W-: Last week spot pellet premium for Fe 65% grade pellets was assessed at USD 28.15/MT, CFR China as against USD 31/MT, CFR China a week back.

As per reports, the most-traded September contract iron ore on the Dalian Commodity Exchange rose as much as 1.7% to 610 Yuan/MT.