Indian Pellet Export Prices Move Up in Recent Deal to China

Indian pellet export prices have moved up by USD 3-4/MT this week. According to market sources report to SteelMint, east India based pellet maker Brahmani River Pellets Ltd (BRPL) has recently concluded export deal to China for 50,000 MT pellet. The deal is heard to have concluded at around USD 131/MT, CFR China for Fe 64% and 3% Al. The shipment is scheduled to be made in 1st week of July. SteelMint's price assessment has increased to USD 130-131/MT, CFR China this week against last week's assessment of USD 126-128/MT, CFR China.

Last week, Odisha based pellet maker was heard to have concluded 50,000 MT export deal to China for Fe 64%, 3% Al grade around USD 125-126/MT, CFR China.

Amid rising demand from Chinese mills and falling inventory at ports, steel mills have raised bids for Indian pellet this week.As per SteelHome consultancy, Iron ore inventory at major Chinese port fell to 118.70 MnT last weekend as against 124.9 MnT towards end of May'19.

As per reports, Chinese steel mills have raised usage of pellets in blast furnace amid increased price of iron ore lump. The high lump prices are expected to continue for the month amid tight supply.

According to data maintained with SteelMint, BRPL stood the largest Indian pellet exporter in FY'19 with exports at 2.38 MnT, up significantly by 40% as against 1.70 MnT in FY'18.