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According to Mining News Pro -According to market sources report to SteelMint, eastern India based pellet maker & major exporter - Brahmani River Pellets Ltd (BRPL) has recently concluded two pellet deals to China with quantity of around 60,000- 62,000 MT each. The deal concluded was for regular grade pellets with Fe 64% and 3% Alumina for end October shipment. As reported by trade participants, deals have been concluded at around USD 137/MT, CFR China. However Fe 65% pellet export prices get a bonus and is assessed at around USD 139/MT, CFR. Present vessel freight rate from India to China is at around USD 10.5/MT.

The vessel named “MV Naess Absolute” is currently loaded at Paradip port and another vessel will be loaded in upcoming week. The material shipment is scheduled in October end.

The pellet export offers witnessed a downtrend due to relaxation in environmental controls by the Chinese government in Tangshan, followed by shift towards adoption of fines, as evident from rising iron ore prices. Chinese spot iron ore prices increased to USD 77/MT, CFR China this week as against USD 75/MT, CFR China towards beginning of week. The prices have picked up amid restocking with anticipated large scale production cuts to commence by early or mid November and preference over pellets.

Earlier this week, Jindal Steel & Power concluded pellet export deal for around 50,000 MT for regular grade pellets (Fe 64/63%, containing 3% alumina). The deal had been concluded at around USD 139-140/MT, CFR China. The material shipment is scheduled in October.

Spot pellet premium drops USD 1.75/DMT W-o-W

Spot pellet premium for Fe 65% grade pellets assessed at USD 72.35/DMT, CFR China this week, down by USD 1.75/DMT W-o-W against USD 74.10/DMT a week before.