Southern India based pellet maker - KIOCL had floated pellet export tender for 50,000 MT with 64% Fe content and less than 2% alumina content. According to sources the tender has been concluded at around USD 145/MT, FoB India.
KIOCL recorded enhanced pellet sales at 0.53 MnT for Q1 FY`19. Out of the total sales, the company exported 0.39 MnT of pellets while sold the remaining 0.14 MnT of pellets in the domestic market.
Indian pellet export prices hovering are at nearly 4 years high as these price levels were last seen in 2014. Spot pellet premium for Fe 65% grade pellets assessed at USD 76.85/DMT, CFR China last week 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.
Recent pellet export deals concluded by Indian producers -
--Last week, eastern India based pellet maker concluded deal for 50,000 MT (less than 3% Alumina) at around USD 145-146/MT, CFR China.
--A couple of weeks back, KIOCL had concluded a deal for around 50,000 DMT pellets with 65% Fe content and less than 2% alumina at around USD 136-137/MT, FoB India. The pellets were made out of imported high grade concentrate.
--Last month KIOCL concluded three deals for 50,000 MT pellets each containing Fe 64% grade (less than 2% alumina at around USD 116-118/MT, FoB India for August shipment.
--Eastern India based BRPL is to export 55,800 MT pellets to Mexico. The vessel named MV Egret Bulker‘ has left Paradip port on 16 August. The deal was concluded towards end of July at around USD 135/MT, CFR. Vessel freight to Mexico is learned to be around USD 18/MT.
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 (Japan, European and South Korea), accompanied with constraint supply in global market, Indian pellet export prices have seen sharp uptick.
Besides, Chinese winter production cuts are expected to start from 1st Oct this year against 15th Nov last year with possibility for Tangshan region to start heating season production restrictions from 1st Sept. This has added to Indian Pellet demand in global market.
