Indian Pellet Exporters Resume Trades on Rising Spot Chinese Prices
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Indian pellet exporters have turned active following hike in Chinese spot iron ore prices. Iron ore price for Fe 62% fines has witnessed an increase last week.The index closed at USD 77.1/MT CFR, China on 5th Jan'18 against USD 75.2/MT, CFR China at the beginning of the week.
Mills' restocking activities for delivery before the Lunar New Year holidays in February and after mid-March when some northern Chinese mills resume production has witnessed pushing up iron ore prices.
Recently few trade deals have been reported by east India based pellet manufacturers. An Odisha based pellet exporter has recently concluded an export deal of 50,000 MT pellet for Jan'18 shipment at USD 116/MT, CFR China. Also, few sources shared that another East India based pellet maker has concluded a deal of 50,000MT pellets at around USD 115/MT, CFR levels. However, few other Indian pellet makers are eyeing for higher levels of USD 118-119/MT, CFR levels
Indian pellet makers had slowed down exports in Dec'17as they had booked quite an amount of vessels the previous month for which the delivery was scheduled till mid of Jan'18. Also, Chinese steel mills were preferred making pellets out of imported concentrate rather than importing pellets in Dec'17.
Spot pellet premium has remained majorly stable on weekly premises at USD 42.5/MT, CFR China.
Indian Pellet Exports surge by 67% Y-o-Yin CY17
Indian pellet exports have seen a marked rise of 67% Y-o-Y to 9.68 MnT in CY'17 as against 5.79 MnT in CY'16. Indian pellet exports have increased sharply amid increased Chinese demand post-Samarco disruption.Post the disaster, Chinese steel mills shifted to India for pellet imports leading to increased exports from India. Also shift towards high-grade material (like pellets) resulted in improved pellet demand. China accounted 84% of total Indian pellet exports in CY'17.
