Jindal Steel to Come Up with Pellet Export Tender Next Week - Sources

Jindal steel and power ltd, India's largest pellet exporter is likely to come up with fresh export tender next week, according to sources. Jindal steel has recently started selling pellets for exports through an e-tender mechanism.

Jindal steel's last tender was held on 2nd week of September for 50,000 MT before Chinese went for a long holiday of 64% Fe pellets. This tender was settled at 118.5/MT, CFR China.

Indian pellets are very popular in China these days owing to rising demand for high grade lumps and pellets and absence of Brazilian pellets.

Jindal steel exported about 1.47MnT pellets during Jan-Sep 2017, which is higher by 23% during same period last year, according to data maintained by SteelMint.

Indian pellet exports have increased multi folds in 2017. India exported 5.79 MnT in 2016, which is increased to 6.75 MnT in first 9 months of 2017. Indian pellet exports are expected to touch 8 million tonnes in 2017.

Indian pellet prices according to index and premium is at around 109-111/t CFR for November shipment.

However Chinese buyers are not willing to buy on fixed price method but they prefer average index price of month of unloading plus the pellet premium owing to volatility in iron ore prices, steelmint learned from market participants.

Some deals from India was reported early this week at around $111-113/t CFR when pellet premium was $50/t.Pellet premium has now dropped to $44/t.