JSPL Offers 50,000 MT Pellet for Export

Jindal Steel & Power Limited (JSPL) - India's largest pellet exporter is offering 50,000 MT pellet for exports for which shipment are to be scheduled between 1st Mar to 10th Mar'18.

Earlier this month, in 2nd week of February, the pellet maker concluded a deal of 50,000 MT pellets to China at around USD 116/MT, CFR.

The growing interest in exports is owing to softening domestic pellet prices, amid reduced buying interest and limited trades.

The shift towards exports is expected to be increasing owing to initiation of restocking to fulfill the enormous demand after the New Year Holidays in China. Further, due to approaching extreme construction activities season in March, traders and buyers are expected to soon resume buying of materials, enhancing Indian exports.

Global iron ore fines prices move up sharply

China's govt called for steel production cuts during 15th Nov'17- 15th Mar'18 (winter heating season), to combat pollution in heavily polluted cities. But, the cap is expected to increase to 10-15% cut in blast furnace capacity for eight months more, till mid-November, resulting in increase in ferrous futures.

Iron ore fines Fe 62% fines index has increased today to USD 79.95/MT, CFR China.

The spot pellet premium, have witnessed no change w-o-w at USD 38.5/dmt.

SteelMint Reference pellet export price assessment stands at USD 115-118/MT, CFR China.

Indian Pellet Exports surge by 67% Y-o-Y in CY'17

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 announced steel production cuts by Chinese govt. forced the steel mills to go for high-grade material (like pellets) resulting in improved pellet demand. China accounted 84% of total Indian pellet exports in CY'17.

JSPL continued to be the largest exporter for the duration of CY'17 with exports at 1.98 MnT, accounting for 20% share in total pellet exports from India.