Iron ore and Coal

Indian Pellet Exporter Fetches High Premium for Low Alumina Pellets in Recent Deal

Indian Pellet Exporter Fetches High Premium for Low Alumina Pellets in Recent Deal
Mining News Pro - According to market sources report to SteelMint, southern India based pellet maker - KIOCL (Kudremukh Iron Ore Company Limited) has recently concluded a deal of 50,000 MT pellets of Fe 64% grades (less than 2% alumina). As per sources, the deal has been concluded at around USD 117-118/MT, FoB India for July shipment. The company had floated a limited tender 2 days back following which the deal was concluded.
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SteelMint’s price assessment for normal grade pellets stands at around USD 119/MT, CFR China; higher by USD 1-2/MT W-o-W. China. Demand for Indian pellets in China continue to remain strong over less Indian supplies owing to the following reasons:

1. Better Realization in Domestic Market-: India pellet makers are getting a better realization in the domestic market over increased offers following recent iron ore price hike in Odisha. In Durgapur (eastern India) reference pellet price assessment stands at INR 6,900-7,000/MT (delivered) this week against last week’s assessment INR 6,800/MT. Barbil pellet price assessment stands at INR 6,500/MT (loaded to wagons) against INR 6,200/MT last week.

2. Monsoon Concerns: Upcoming monsoon in India make domestic sponge manufacturers prefer pellets over iron ore, which may lessen movement for exports further.

3. Logistics issue in the eastern India-: Trade sources highlighted that plants are currently facing extremely low iron ore/pellet rake availability in the eastern region which has hampered material movement.



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