Indian Pellet Maker Concludes 55,000 MT Export Deal to China

Indian pellet export market has regained momentum with recent deal. Indian pellet maker based in eastern India has concluded pellet export deal for 55,000 MT pellet (F e 64%, 3% Al) to China, SteelMint learned from sources. The deal is heard to have concluded at around USD 109/MT, CFR China with 1st week of Jan laycan.

Chinese spot iron ore fines price was assessed yesterday at USD 88.7/MT, CFR China up against 87.25/MT CFR china assessed last weekend. In recent update received, Vale announced partial suspension at Brucutu mines due to temporary suspension at Laranjeiras dam. Brucutu mines is supposed to be operating at only 40% of its capacity and the estimated impact of the same is at around 1.5 MnT of iron ore per month over the one-two months stoppage.

The pellet exports market is further expected to pick up due to stringent environmental controls and, higher steel margins and falling port inventories. As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 129.4 MnT last weekend as against 129. 5 MnT assessed a week before. Pellet inventories were reported at 6.4 MnT against 6.5 MnT towards last weekend.

Few market participants indicated to have received firm bids at USD 110/MT, CFR China and expect prices to gain strength further in coming days.

SteelMint's assessment for Indian pellet export stands at USD 108.5-109.5/MT, CFR China for Fe 64%, 3% Al pellets up by USD 2/MT W-o-W.