Indian Pellet Manufacturers may Offer upto 300,000 MT for Exports in March - Sources

According to market sources report to SteelMint, Indian pellet exporters have plans to offers around 300,000 MT material in March. As per trade sources, major Indian pellet makers namely - JSPL, Essar Steel, BRPL and KIOCL are eyeing to offer cargoes in March.

An Indian pellet exporter is offering 50,000 MT pellet but the deal is under negotiations and not been concluded yet.

Earlier last week, JSPL- India's largest pellet exporter offered 50,000 MT pellet for exports for which shipment are scheduled between 1st Mar to 10th Mar'18 at around USD 118/MT, CFR China.

Extended steel production cuts in China to boost pellet demand

The softening domestic pellet prices are enhancing interest in exports. The heading spring season which is characterized by extreme construction activities in China is expected to fetch greater interest from Chinese buyers and traders.

Extended steel production cuts in China's key steel making city - Tangshan, has resulted in increased demand for iron ore pellets in China.

Amidst stricter environmental norms in China, mills are expected to prefer high grade ore (pellets) as feedstock as a cost effective means for production, further enhancing exports.

Iron ore fines Fe 62% fines index has increased to USD 75.20/MT, CFR China on Wednesday as against USD 75/MT a day before.

The pellet premiums have witnessed an uptick of USD 2.70/DMT on Wednesday 7th Mar'18 to USD 42.50/DMT as against USD 39.80/DMT a week before. The decline in fines base price has pushed up the pellet premiums.