Mining News Pro - According to market sources report to SteelMint, Central India based pellet maker - Godawari Power & Ispat Ltd. has recently concluded an export deal of 50,000 MT pellet to China. The deal has been concluded at around USD 152/MT, CFR China for November shipment. Godawari Power and Ispat produced 0.45 MnT pellets in Q1 FY19, lesser by 9% Q-o-Q and 2% Y-o-Y. The company has observed 1.84 MnT pellet production, an increase of 23% Y-o-Y in FY`18 against 1.5 MnT in FY`17.
According to Mining News Pro -According to market sources report to SteelMint, Central India based pellet maker - Godawari Power & Ispat Ltd. has recently concluded an export deal of 50,000 MT pellet to China. The deal has been concluded at around USD 152/MT, CFR China for November shipment. Godawari Power and Ispat produced 0.45 MnT pellets in Q1 FY19, lesser by 9% Q-o-Q and 2% Y-o-Y. The company has observed 1.84 MnT pellet production, an increase of 23% Y-o-Y in FY`18 against 1.5 MnT in FY`17.
Indian pellets export offers have observed an uptrend amid improved demand from Chinese as well as Japanese & South Korean steel mills. Due to strict governmental regulations in China, limited offers and announcement of capacity cut ahead of the schedule (before 45 days against last year), strong demand for Indian pellets is seen from overseas buyers.
Amidst high pellet export realizations and decent export bookings made, pellet supply in domestic market has reduced resulting in hike in offers in domestic market. As per trade participants, central India based pellet makers have booked around 5-5 pellet export vessels this month.
SteelMint`s Raipur pellet assessment is around INR 8500/MT (basic). The decline in pellet sales by major Central India based major pellet makers has resulted P-DRI price rise by INR 1,800/MT W-o-W and is trading at all-time high at INR 24,600/MT (basic).
Last week Essar Steel had concluded deal for 50,000 MT (Fe 64% min, 2.6% Alumina max) pellets in at around USD 149-150/MT, CFR China. The material loading will start in mid-September.
Spot pellet premium continues to surge
Spot pellet premium for Fe 65% grade pellets assessed at USD 84.2/DMT, CFR China this week up by USD 7.35/DMT W-o-W against 76.85/DMT a week before. Pellet premium has reached record high levels.
Indian pellet export shipments increase in August
According to provisional data maintained with SteelMint, Indian Pellet export from India in Aug`18 is expected to increase by 7% on monthly basis to 0.6 MnT as against 0.56 MnT in Jul`18.
