Indian pellet export prices move up in recent deal

Surge in iron ore fines index following rally in futures, have pushed up pellet prices. Indian pellet export prices have increased further in a recent deal reported. Southern India based pellet maker - KIOCL has concluded export deal for 55,000 t as per reliable sources report to SteelMint. Deal Fe 64% grade pellets with less than 2% Al was reported to be concluded at $117-118/t, FoB India for Aug'20 shipments.

In Jul'20, KIOCL concluded two pellet export deals (Fe 64%, less than 2% Al) at $102.5/t FoB India and that the deal was concluded for MENA region.

Spot iron ore fines (Fe 62%) yesterday rallied by $2.95/t to $121.45/t and hit one-year high following rise in iron ore futures. On a weekly basis, spot prices increased by around $10/t and around $16/t CFR China on a monthly basis.

However, for standard grade Indian pellets (Fe 64%, 3% Al) price indications are around $120-121/t, CFR China. SteelMint's pellet export assessment has increased by 7$/t w-o-w to $107/t FoB India for standard grade pellets.

Spot pellet premium for Fe 65% grade pellets assessed for this week at $3.65/t, CFR China as against $ 7.85/t, CFR China a week back.