India: Rise in Premium Pushes Up Pellet Export Offers

Pellet premium for Fe 65% grade pellets has increased by USD 2/MT and is presently assessed at USD 31.5/DMT, CFR China. With hike in pellet premium, Indian pellet export offers have also increased.

SteelMint’s assessment for Indian pellet (Fe 64/63%) for September shipment is now at USD 106-107/MT, CFR China which is equivalent to USD 96-97/MT, FoB India.

Sources mentioned that an east India based pellet exporter was heard to have offered 50,000 MT via tender.

Apart from rise in pellet premium, another reason behind increase in Indian pellet export offers is rise in iron ore futures.

Iron ore futures in China continued to trade on higher side today. High grade material turned costlier further amid strong demand and decline in port inventories against last week. Dalian Iron ore futures have increased nearly 7% making September shipments to be priced higher.

Also today benchmark iron ore fines (Fe 62%) index has surged today and closed to USD 78/MT, CFR China, up by USD 2-3/MT D-o-D.