Indian Pellet Export Tender Receives Higher Bids amid Rising Premium

A pellet export tender of 50,000 MT issued by one of the private manufacturers was heard to have received highest bid  of around USD 107/MT CFR China, according to sources.

Although it is not clear if the tender has been concluded.

This is the first time the company has put its cargo under hammer through an online auction portal.

These levels are highest since the mid of Oct’14 and is a result of rising pellet premium and iron ore index. Notably pellet premium have increased by about USD 2-3/MT and index have increased by USD 2-3/MT for October delivery.

Pellet premium being assessed at around USD 31-32/MT and index at USD 73-74/MT for 62% Fe , CFR China basis for Sep shipment.

Domestic pellet supplies remain tight on strong export demand. Pellet prices have increased by almost INR 750/MT in last one month in India.

Indian pellet exports in July were recorded at 0.66 MnT, which is higher by 10% compared against previous month and 70% higher, when compared with same month last year.

Indian total pellet exports were recorded at 5 MnT during Jan-Jul 2017.