India: KIOCL Concludes Another Pellet Export Deal

This seems to be the 3rd export deal concluded by pellet maker in last 15-20 days. Earlier this month, SteelMint reported High-Grade Pellets Continue to Fetch Better Premium in Global Market.

SteelMint’s price assessment for regular grade pellets (with alumina 3%) stands at around USD 123-124/MT, CFR China. The demand for Indian pellets in China continues to remain strong owing to unveiled production cuts in northern China and comparatively lower offers in the domestic market.

Although rake availability is an issue in eastern India which has hampered material movement in domestic markets as well as to ports.

Indian pellet exports doubled in June - According to the customs data maintained with SteelMint, Indian pellet exports for the month of June`18, witnessed at 0.83 MnT, up by two folds as against May`18 exports at 0.40 MnT. Indian pellet export price assessment increased from USD 97/MT, FoB India in May`18 to USD 101/MT, FoB India in June`18. Indian pellet exports in Jun`18 stood so far in CY`18.

On yearly basis, pellet exports increased by 38% as compared to 0.6 MnT in Jun`17.
For first quarter FY`19, Indian pellet exports depicted decline of 7% at 1.83 MnT as against 1.97 MnT in Q4 FY`18. However, on yearly basis exports have increased by 8% against Q1 FY`18 at 1.70 MnT.