Aluminum and Copper

Indian Pellet Export Prices Increase Further on Imposed Production Cuts in China

Indian Pellet Export Prices Increase Further on Imposed Production Cuts in China
Mining News Pro - According to the market participants reported to SteelMint, Indian Pellets demand in China has continued to remain on the higher side following which pellet export price assessment has increased further by USD 2-3/MT W-o-W. As per the sources regular grade Fe 64% Indian pellet is tradeable around USD 120-121/MT, CFR China.

SteelMint has also learned from the sources that for 2.4-2.5% alumina content pellets, prices would be around USD 124-125/MT, CFR China.

However, for further lower alumina content (less than 2% alumina content), high-grade pellets inquiries are heard around USD 117-120/MT, FoB India.

Reason for the surge in Pellet export offers-:

1. Northern China unveiled further Production cuts-: China is imposed strict govt. regulation for appeasing environment-related issues, in that process they have further imposed production cuts in Tangshan (Northern China) have resulted in increased high-grade BF pellet consumption. Last week China’s top steel-making city, Tangshan in Hebei province ordering steel mills, coke producers, and utilities to cut output in the summer season. It moves to deepen the cut will last for six weeks from 20 Jul’18 to 31 Aug’18. These production cuts will be in addition to the winter production curbs of 10-15% imposed from Mar-Nov’18.

2. Monsoon factor-: As the pellets, stocks are less available with the Chinese still mills and on another side, the monsoon is affecting the supply side from India. Chinese still mills are actively looking for Indian pellets even at the premium rates.

Although domestic pellet market in India has weakened amid dull market and softened demand from sponge manufacturers, the export market seems to have strengthened this week.

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