India's KIOCL Concludes 50,000 MT Pellet Export Deal - Sources

Southern India based pellet maker - KIOCL has recently concluded pellet export deal.

The company had floated export tender offering 50,000 MT pellet consisting of Fe 64% content with less than 2% alumina. As per the sources, the deal was concluded at around USD 116/MT, FoB India. According to trade sources report to SteelMint, the tender has been concluded for the non-Chinese market, however, confirmation was not received till the time of publishing this report.

Earlier in Feb’19, the pellet maker concluded export tender of 50,000 MT consisting of Fe 64% content and less than 2% alumina at around the same price level of USD 116/MT, FoB India.

Indian pellet makers stated decline in pellet inquiries from Chinese steel mills after Lunar New year holidays. Mills are heard to have shifted to low-grade iron ore amid shrinking steel margins in recent past.

According to the customs data maintained with SteelMint, Indian pellet exports have marked the drop of 20% to 0.81 MnT in Feb'19 as against 1.02 MnT in Jan'19.

KIOCL Domestic pellet offers -:

According to market sources report to SteelMint, KIOCL's domestic pellet offer is around INR 8,300/MT FoB New Mangalore port basis.

BRPL turns out to be the largest pellet exporter in Feb'19

BRPL stood the largest exporter for Feb'19 with exports at 0.23 MnT down 12% as against 0.26 MnT in Jan'19. JSPL stood second highest pellet exports at 0.21 MnT (down 30% M-o-M), followed by KIOCL at 0.17 MnT and Bagadiya Brothers at 0.05 MnT.