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

Southern India based pellet maker - KIOCL has concluded pellet export deal today via tender floated yesterday on 30th May’19. The company had floated export tender offering 50,000 MT pellet consisting of Fe 64% content with less than 2% Al. As per the sources, the deal was concluded at around USD 119/MT, FoB India.

Last week, eastern India based pellet maker had concluded an export deal for around 50,000 MT for regular grade pellets (Fe 64%, containing 3% alumina) for June shipments. According to the sources, the deal has been concluded at around USD 126-127/MT, CFR China.

SteelMint's assessment for regular grade Fe 64%, 3% Al stands at around USD 124-125/MT, CFR China. Prices have remained stable mostly against last week. However Indian pellet exporters are eyeing for higher bids.

As per reports, Chinese steel mills have raised usage of pellets in blast furnace amid increased price of iron ore lump. Pellet inventory at China ports stands at 5 MnT lower than the last week at 5.15 MnT.

Spot pellet premium increased by USD 4/MT this week -: Spot pellet premium for Fe 65% grade pellets assessed at USD 27.3/DMT, CFR China this week, up by USD 4.1/DMT W-o-W against USD 23.2/DMT a week before. On the other hand, iron ore fines index declined to around USD 102/MT a today after a recent hike at USD 108/MT, CFR China.