India Pellet Export Offers Increase Amid Strong Demand from South Korean Mill

According to the market participants report to SteelMint, demand for low alumina Indian pellets has continued to increase following improved buying interest from a major South Korean steel mill. The mill is aggressively looking to procure pellets for prompt deliveries.

Price hike has been seen noticed for low Alumina content pellets. Price levels for low Alumina Indian origin pellets is heard around USD 133/MT, CFR South Korea for September shipments while that for August shipments were heard around USD 134-135/MT, CFR levels.

China`s newly announced production cuts to further strengthen demand for pellets - In a draft proposal for emissions control during the winter heating season prepared jointly by China’s industry and environment ministries, it has been proposed to implement a 50% winter pig iron production cut in some of the north China cities this year starting from 1 October, 45 days earlier than it did in 2017.

As per the proposal, cities of Tanjin, Shijiazhuang, Tangshan, Handan, Xingtai and Anyang are expected to cut their blast furnace steel output by 50% whereas at least at least 30% output is expected to be cut in 22 other cities in the region. 

Indian pellet exports in CY18 -According to customs data maintained with SteelMint, Indian pellet exports were recorded at 4.36 MnT during Jan-Jul’18. China remained the largest destination with share of nearly 71% followed by South Korea with a share of 6%. Other major countries were Vietnam, UK, Japan, UAE and others.