India: Pellet Export Interest Slides as Chinese Buyers Prefer Port Stock
Indian (low Alumina) pellet export tender heard to have received highest bid at USD 115-117/MT FOB India, which is equivalent to USD 127/MT CFR China
Buying interest for Indian pellets in seaborne market remains dull this week as market seeks more clarity on impact of Vale supply disruption. Chinese mills prefer port stock over seaborne cargoes, SteelMint learned from market sources. Besides, the steel mills tend to stock material in January before approaching week long new year holidays in Feb to ensure sufficient raw material availability post holidays.
No deal was reported this week except a pellet export tender of 50,000 MT by state owned unit consisting of Fe 64% content and less than 2% alumina. The deal was heard to have concluded at bids around USD 116/MT, FoB India. However confirmation from company was still awaited till the time of publishing of report.
According to SteelMint's assessment for regular grade pellets the prices have decreased on weekly basis to around USD 122-123/MT, CFR China as against USD 124-125/MT, CFR China last week.
Indian Pellet export tender
Last week, Odisha based major pellet maker had concluded 50,000 MT pellet export deal for Fe 64% and 3% Alumina. The deal was heard to have concluded at USD 124/MT, CFR China.
What lifted market sentiments in pellet export?
After the recent mishap, iron ore miner- Vale has announced plans to halt 40 MnT of iron ore production and 10-11 MnT of pellet production, so that it can decommission dams similar to the one that burst. This resulted in sharp hike in iron ore & pellet prices in global market anticipating shortage in seaborne supply in near term.
The Vale dam tragedy had resulted in surge in iron ore prices. The spot iron ore prices shot up sharply from end Jan'19 at around USD 75/MT, CFR China to USD 87/MT, CFR China towards early Feb and to USD 94/MT, CFR China last weekend. However, the iron ore prices depict a downward trend this week amid awaited clarity on amount of supply disruption.
source: SteelMint
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
