Iron and Steel

Indian Pellet Export Prices Up in Recent Deal

Indian Pellet Export Prices Up in Recent Deal
Mining News Pro - According to market sources report to SteelMint, an east India based pellet maker has recently concluded pellet export deal of 50,000 MT regular grade pellets (less than 3% alumina). As per sources, the deal has been concluded at around USD 145-146/MT, CFR China for September shipment. The exports realization so heard witnessed a steep rise against last assessment of USD 132-133/MT, CFR China. As per sources, traders are taking positions at these levels and its skeptical whether prices will continue to remain at such high levels.
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According to market sources report to SteelMint, an east India based pellet maker has recently concluded pellet export deal of 50,000 MT regular grade pellets (less than 3% alumina). As per sources, the deal has been concluded at around USD 145-146/MT, CFR China for September shipment. The exports realization so heard witnessed a steep rise against last assessment of USD 132-133/MT, CFR China. As per sources, traders are taking positions at these levels and its skeptical whether prices will continue to remain at such high levels.

Due to strict governmental regulations in China, steel mills prefer high grade ore and mills are heard stocking the material beyond the production needs. Amidst rising demand by Chinese and other overseas buyers, accompanied with constraint supply in global market, Indian pellet prices have seen sharp uptick.

Besides, LKAB, world`s second largest producer in seaborne pellet market had declared force majeure resulted in temporary supply cut by the miner. As per the latest update received, the normal operations have been restored.

Increasing demand by Chinese mills amidst approaching winter cuts along with increasing dependence by Japan, European and Korean still mills on Indian pellets has raised pellet export realizations.

Spot pellet premium Hit Record High at USD 76.85/MT

Spot pellet premium for Fe 65% grade pellets assessed at USD 76.85/DMT, CFR China, up by USD 7.65/DMT W-o-W against 69.20/DMT a week before. Pellet premium this week has reached record high levels. The enormous surge in the pellet premium is attributed to limited supply in spot market, along with aggressive restocking by traders.

 

 


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