Indian Pellet Export Price Assessment Falls Marginally, No Deals Reported
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As per market sources report to SteelMint, Indian pellet export prices are assessed at around USD 147-148/MT, CFR China levels for regular grade pellet with 3% alumina against last assessment of USD 150/MT, CFR China towards end of September.
The pellet export assessment have softened this week owing to rise in iron ore fines prices, assessed at USD 70.55/DMT for Fe 62% due to increasing restocking demand from China.
As per sources report, Indian pellet exporter turned inactive with no deals being concluded last week amid Chinese Golden Week holidays (1st Oct-7th Oct). Besides, the winter capacity cut ahead of the schedule (before 45 days against last year), has also impacted the Indian exports market. Few cities in China such as Tangshan were reported to have announced to enforce production cuts from 11th Oct, to evaluate the air quality standards.
Indian Pellet export market is likely to remain supported due to temporary closure at Swedish miner - LKABs Svappavaara pellet plant which will remain shut for maintenance until Jan'19. LKAB is EU's largest iron ore producer and 2nd largest producer in seaborne pellet market, disruption at LKAB is to bring more opportunities of Indian pellet market.
KIOCL's e-tender for pellet exports expiring tomorrow
As per sources, KIOCL is offering 50,000 MT pellet for exports, the due date for the tender being 14:00 hrs on 11th Oct.
Apart from KIOCL, Brahmani River Pellets is also heard to be offering pellets for export.
Spot pellet premium drops further
Spot pellet premium for Fe 65% grade pellets assessed at USD 86.5/DMT, CFR China this week down by USD 1.25/DMT W-o-W against 87.75/DMT a week before.
Indian pellet exports doubled in Sep'18
Indian pellet exports have registered an increase to more than twice M-o-M to 0.95 MnT in Sep'18 as against 0.45 MnT in Aug'18. On yearly basis, pellet export increased 17% against 0.82 MnT in Sep'17. India exported 62% of Sep'18 pellet to China at 0.59 MnT (up 48% M-o-M). India depicted exports to South Korea and Japan at 0.26 MnT and 0.06 MnT respectively against being nil in Aug'18.
