Indian Pellet Makers Anticipate Export Offers to Increase Further
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Rising spot pellet premium and improved demand from China has resulted Indian pellet manufacturers to raise offers further. According to market sources report to SteelMint, east India based major pellet makers are eyeing for export offers at USD 87-88/MT, CFR China which is equivalent to USD 80-81/MT, FoB India east coast.
Market participants highlighted that presently there are firm bids from Chinese steel makers at USD 85-86/MT, CFR China and we are expecting offers to escalate further in the coming weeks.
Spot pellet premium for Fe 65% grade pellets is assessed at USD 26.75/MT, CFR China and is likely to increase further in the coming days.
Vessel freight is also seen in negative trend over bearish sentiments arising from moderate demand. Vessel freight for pellets to China from east coast of India has come down and is assessed at USD 7-8/MT. This has further benefited Indian pellet exporters.
Domestic pellet market scenario : Week 25
Pellet prices in Durgapur have come down marginally this week amid less trade activities.
Southern India based pellet makers reported drop in pellet offers this week over decline in P-DRI prices. Fe 63% pellet offers in Bellary are presently heard in the range of INR 5,650-5,850/MT (basic), down by INR 100-200/MT W-o-W. P-DRI prices in Bellary have weakened by INR 300-400/MT W-o-W.
Prices in central India continue to remain stable this week.
Indian Pellet Prices as on 13 Jun'17
| Domestic Prices | ||
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 3,700-3,900 |
| Jamshedpur | 63 | 3,900 |
| Jharsuguda | 63 | No offers |
| Durgapur | 63 | 4,200-4,400 |
| Raipur | 63 | 4,700-4,800 |
| Bellary | 63 | 5,650-5,850 |
| Global Prices | ||
| FoB India (USD/MT) | 63 | 80 |
| CNF China (USD/MT) | 63 | 87 |
*loaded to wagons
Source: SteelMint Research
