The global pellet premium have moved up to USD 49/MT, CFR China, a jump of 18% W-o-W which was at USD 41.5/MT, CFR China is being connected to the momentum in the India export deals that are completed recently.
The upward movement in India pellet market had the repercussions on global steelmaking raw material market pushing the spot pellet premium up.
According to market participants report to SteelMint, one of the Indian pellet exports have finalized a deal at around USD118/MT, CFR China. It is heard that there are many more deals in pipeline by other sellers.
In the beginning of the week one of major manufactures also was heard to have sold a 64% Fe pellet cargo at USD 121/MT CFR China, mid November delivery.
Indian pellet have always been preferred by Chinese millers. The demand for higher grade material was impacted by increased coking coal prices earlier and has been pushing the alternative material requirement in China recently.
It is believed that to curb the pollution a considerable cut in the use of Sinter, along with minimized feed of low grade ore is noticed in China and made a way for the transition to high grade lump and pellets by Chinese steel mills.
Last week, JSPL concluded pellet export tender for mid October shipment at USD 119/MT, CFR China. These prices were above market expectation as index has dropped in last few days.
Index for 62% Fe iron ore fines is at around USD 66.1 /MT, CFR China for November and USD 67.4 /MT, CFR China for October.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)
