Indian Pellet Export Prices Fall Marginally Amid Decline in Premium

The Indian pellet export prices after maintaining on higher side have shown marginal decline this week amidst decline in spot pellet premiums.

According to market sources report to SteelMint, Indian pellet export prices are assessed at USD 118-120/MT, CFR China as against previous week's assessment of USD 119-123/MT, CFR. Price disparity between bids and offers resulted in limited trades.

With an aim to achieve stronger steel margins, the pellet buyers in China are reluctant to purchase pellets at very high prices. The week's premium prices reduced by USD 4.50/MT W-o-W to USD 53.50/MT CFR China.

Few Chinese based steel mills were heard to have preferred to procure pellet feed or iron ore concentrate than importing pellets as the former is less cost effective.

On the other side, iron ore prices in China have witnessed considerable increment since 2-3 days. Fe 62% iron ore fines index moved up by USD 1.05/MT D-o-D and closed at USD 67.7/MT, CFR China. Towards the beginning of the week, the index stood at USD 63.9/MT, CFR China.

The Samarco dam disaster rendered high benefits to Indian pellet exports this year. According to the customs data maintained with SteelMint, in the first seven months of FY'18 the Indian pellet exports have grown 36% Y-o-Y to 4.93 MnT pellets against 3.63 MnT exports in the same time period last year.