India's KIOCL Concludes 50,000 MT Pellet Export Deal - Sources

Southern India based pellet maker - KIOCL has concluded pellet export deal recently via tender floated. The company had floated export tender offering 50,000 MT pellet consisting of Fe 64% content with less than 2% Al for which the bid due date was 14 May’19.

As per the sources, the deal was concluded at around USD 115/MT, FoB India. If market sources are to be believed, cargo has been bought by a trader.

SteelMint reported last week that, eastern India based pellet maker - Brahmani River Pellets had recently concluded pellet (Fe 64%, 3% Al) export deal to Turkey for a quantity of around 500,000 MT via 7-8 shipments. Deal for pellets with Fe 64% and 3% Al was learned to be concluded at around USD 124/MT, CFR Turkey. Freight for Turkey is around USD 13/MT.

SteelMint’s pellet export assessment stands at USD 121-122/MT CFR, China mostly stable against last week’s assessment for Fe 63% grade pellet (0.5+/-) with 3% Al content.

However, no new deal to China was learned to be concluded at this rate amid delay in pending old order dispatches owing to cyclone Fani in eastern India.

China's largest steel-producing city will continue to partially enforce steel output and sintering restrictions until September. China govt. also plans to relocate around 13 steel mills from downtown addresses to coastal areas amid environmental concerns.

Kudremukh Iron Ore Company Ltd (KIOCL) last month in April signed a tripartite MoU with Emirates Steel, Abu Dhabi, and Star Global, Dubai for sale of high-grade pellets to Emirates Steel.

KIOCL is working to increase its pellet production by 20% in FY20 at Mangaluru plant, which has an installed capacity of 3.5 MnT. Company’s production has recorded at 2.24 MnT, above the set target of 2.17 MnT in FY’19.