Indian Pellet Export Prices to China Fall in Recent Deals

According to Mining News Pro -According to market sources report to SteelMint, central India based pellet maker concluded 50,000 MT export deal to China for Dec`18 shipment. As per sources the deal was for low alumina pellets and was heard to have concluded at around USD 129/MT, CFR China.

Another pellet exporter has concluded the deal for 2 prompt shipments for Fe 64% regular grade pellets (2.5% Al) with the quantity of 110,000 MT at USD 126/MT, CFR China.

Indian pellet export prices have softened in the recent trade further amid lowered bids from Chinese mills amid limited buying interest. On weekly basis, Indian pellet export price assessment has come down by USD 10/MT.

Amidst uncertainty on sintering and production cuts in the Chinese market, Chinese mills were seen showing preference to fines than pellets.

This resulted in sharp hike in spot iron ore fines prices. Fe 62% fines closed this week at USD 77.25/MT, CFR China yesterday.

Spot pellet premium plunge further - Spot pellet premium for Fe 65% grade pellets assessed at USD 63.85/DMT, CFR China this week, down by USD 7.5/DMT W-o-W against USD 71.35/DMT a week before. Increased supply of domestic pellets in China has turned out to be a major competitor of imported pellets resulting in falling spot pellet premium.