Indian Pellet Export Offers Increase on Renewed Buying Interest from China

Demand for Indian origin pellets have regained pace in China again this week. Amid announced sintering cuts in order to curb pollution, Chinese steel mills continue to remain active in booking high grade material (pellets and lump).

This has resulted in hike in Indian pellet export offers. Pellet export offers which were assessed at USD 108-109/MT, CFR China last week have moved up this week and are assessed around USD 112-114/MT, CFR.

A pellet trader shared that he received firm bids from Chinese steel mills at USD 112-113/MT, CFR for November shipment. Thus realization in offline bids are received are higher than the current prevailing index. Presently iron ore fines (Fe 62%) index is hovering at USD 62-63/MT, CFR China and pellet premium (for Fe 65%) is around USD 44.5/MT, CFR China.

Jindal Steel's Pellet export auction for 50,000 MT scheduled today - Jindal Steel and Power ltd, India's largest pellet exporter has scheduled its pellet export auction today. Quantity put under hammer is 50,000 MT for end October or early November shipment.

As per market sources, the company is eyeing for levels of USD 114-115/MT, CFR China.

Jindal Steel's last tender was held on 2nd week of September for 50,000 MT before Chinese went for a long holiday of 64% Fe pellets. This tender was settled at 118.5/MT, CFR China as per market sources.

According to customs data maintained with SteelMint, India exported 6.74 MnT pellets from Jan-Sept'17, out of which 5.33 MnT was exported to China. During Jan-Sept'16, Indian pellet exports to China were recorded at 2.57 MnT.