Indian Pellet Manufacturer Concludes 50,000 MT Export Deal to China - Sources
...
Hike in iron ore prices in China have raised Indian pellet export prices. According to market sources report to SteelMint, an India based pellet exporter has concluded a deal for 50,000 MT to China recently at around USD 117.5-118/MT, CFR China. The shipment scheduled is for Jan end loading.
Earlier this week, an Odisha based pellet exporter was heard to have concluded an export deal of 50,000 MT pellet for Jan'18 shipment at USD 116/MT, CFR China.
The pellet export deals are being concluded at increased prices majorly due to rising iron ore prices. The iron ore benchmark index was assessed at USD 78.80/MT CFR, China as on 9th Jan'18. It stood at USD 75.2/MT at the beginning of the last week. The prices have climbed by around USD 3.5/MT against last week.
Spot pellet premium stands at USD 42.5/MT, CFR China.
Further, the high iron ore fines prices are favored by mills restocking activities for delivery before Lunar New Year (in mid of Feb'18) and after mid-March when northern Chinese mills will resume production. Besides, there is an anticipated iron ore supply disruption from Australia owing to the expected cyclone, which is pushing up the prices.
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 Samarco disaster, Chinese steel mills shifted to India to source pellet 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.
