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According to Mining News Pro - Indian pellet export trades has witnessed decline this week amidst approaching Chinese Golden Week holidays from 1st Oct to 7th Oct. No offers for exports as well as export deals were reported by major Indian pellet makers, however few offers were heard from trader`s end.

The Indian pellet export price assessment is at around USD 149-150/MT, CFR China levels for 3% alumina and around USD 152-153/MT, CFR China for 2.5% alumina.

Besides, the decline in pellet purchase is attributed to sufficient stock holding by the Chinese mills and improvement in buying of iron ore fines. However, Indian pellet makers are hopeful that export market will remain strong post holidays and will start offering in the market in 2nd week of October.

Further, the spot pellet premium has witnessed uptick this week. Spot pellet premium for Fe 65% grade pellets has witnessed slight increase and is assessed at USD 87.75/DMT, CFR China, up by USD 0.65/DMT W-o-W against USD 87.1/DMT a week before.

Last week, Southern India based pellet maker - KIOCL had concluded pellet export tender for around 50,000 MT consisting of Fe 64% content and less than 2% alumina. According to sources, the deal was concluded at around USD 149-150/MT, FoB India.

As per trade sources, South Korea based steel mills have also turned less active after decent bookings being made in mid Aug - mid Sept.

Due to strict governmental regulations in China, steel mills prefer high-grade ore. However, the pellet demand is likely to pick up only after the holidays.