Events and Special Reports

Indian Pellet Makers Turn Active in Exports Amid Softening Domestic Market

Indian Pellet Makers Turn Active in Exports Amid Softening Domestic Market
Mining News Pro - According to the market participants reported to SteelMint, demand for Indian pellets has continued to remain on the higher side following which pellet export price assessment has inched up further from the last assessment by USD 2-3/MT W-o-W. Assessment for regular grade Fe 64% containing alumina about 3% is heard around USD 122-123/MT, CFR China.


SteelMint has also learned from the sources, BRPL (Brahmani River Pellets) – an Eastern India (Odisha) pellet maker is heard offering 50,000 MT pellets for export. As per sources, the company is eyeing for levels of around USD 122-123/MT, CFR China which would come around USD 112/MT FoB India.

Jindal Steel & Power (JSPL) is also offering similar quantity for export but as per updates received the deal is under negotiations. The company is also eyeing for similar price levels of about USD 123/MT CFR.

However, 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 115-120/MT, FoB India.

Reason for increased interest in pellet exports -:

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. Falling pellet offers in the domestic market -: Domestic prices of semi-finished steel have weakened sharply on the backdrop of a seasonal slowdown. Few major pellet makers are holding offers and giving limited quantities in the domestic market. In Durgapur, pellet prices have come down by INR 100-200/MT W-o-W.

3. Depreciating Indian currency - Indian Rupee hit the all-time low of 69.05 against USD on 19 Jul’18. Depreciating Indian currency increased interest for exports.

India`s pellet exports to China increased 52% M-o-M

China continues to be the largest importer of Indian pellet in June`18 with imports at 0.49 MnT, up 53% M-o-M as against 0.32 MnT in May`18. The UK stood as the second largest importer at 0.12 MnT followed by South Korea and Japan at 0.05 MnT each.


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