Indian Pellet Export Market Turns Active on Dull Domestic Demand

Indian pellet export market has regained momentum with domestic trades remaining on the lower side. Sponge plants continue to hold their operations and other major steel mills operating at reduced capacities. With aggressive offers for export, Indian pellet export prices are trading at almost 5-months low. SteelMint's assessment for Fe 64%, 3% Al pellet stands at USD 100-101/MT, CFR China.

--An Odisha based pellet manufacturer was concluded one cargo to China Fe 64% grade with 2.2% Al and the deal was reported at USD 100-101/MT, CFR China. As per the sources, there is another deal under negotiation at USD 100/MT CFR, China.

-- Few sources indicated that Odisha based pellet maker has 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 97-98/MT, CFR China. This is slightly lower than present trade-able prices.

-- KIOCL has floated a limited pellet export tender for the month of Apr'20. The tender due date was till 12:00 hrs today.

Spot pellet premium declined further USD 3/MT W-o-W-: Spot pellet premium for Fe 65% grade pellets was assessed at USD 24.7/MT, CFR China this week as against USD 28.15/MT, CFR China a week back before.

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