Indian Pellet Export Market Turns Active; Two Deals Reported

KIOCL - a southern India based pellet maker has recently concluded 50,000 MT pellet export deal to China, SteelMint learned from market sources. The deal has been concluded for pellet consisting of Fe 64% and 2% alumina at around USD 98/MT, FoB India for immediate September loading.

As per sources, an east India based pellet maker has also concluded an export deal for regular grade pellet (Fe 64% and 3% alumina). The deal is heard to be concluded at around USD 108/MT, CFR China. However the quantity & delivery schedule could not be confirmed at the time of publishing this report.

SteelMint's assessment for Indian pellet export for 3% alumina stands at USD 92/MT, FoB India which is equivalent to USD 106/MT, CFR China.

Chinese bids for pellet is witnessed on lower side amid narrowing steel margins and Chinese mills preference of lumps and domestic pellets over seaborne pellets.

Pellet premium fell 24% W-o-W:
Spot pellet premium for Fe 65% grade pellets assessed at USD 15.50/MT, CFR China as against USD 20.40/MT, CFR China a week before. Pellet inventory at major Chinese ports witnessed rise to 5.25 MnT as against 5 MnT a week ago.

Spot iron ore fines index up:
Spot iron ore fines (Fe 62%) prices witnessed rise to USD 95.50/MT, CFR China assessed yesterday (11th Sep) as against USD 88.10/MT, CFR China assessed towards last weekend.