Post Vale disruption, Indian pellet export prices rallied anticipating shortage in seaborne pellet trades. However, market sentiments have turned dull after Chinese New year holidays. Amid shrinking steel margins, Chinese mills are preferring low-grade iron ore and concentrate rather than going for high-grade ore & pellets.
They are also preferring port stocks rather than seaborne cargo.
This has resulted in limiting pellet inquiries for Indian pellets from Chinese mills. SteelMint has analyzed pellet export realizations of key Indian producers. Ex-plant realization for pellet export in central & eastern India is assessed around INR 5,800-6,200/MT.
Raipur pellet manufacturers are holding offers at INR 7,600/MT but no deals were reported. Market participants are expecting a sharp cut in offers in near term considering decline in P-DRI prices and fall in export realization.
MMTC- a leading international trading company in India and one of the major global players in minerals trade has invited tender for export of 15,000 MT Billets (150*150mm).
Inquiries for seaborne pellet cargoes from Chinese mills which remained subdued since almost a month’s time has observed some signs of improvement this week. Indian pellet export prices have fallen in recent deals concluded.
Vizag Steel (RINL) - the state owned steel maker under the Ministry of Steel, had invited tender for export of 8,127 MT (equivalent to 3 rakes) Billets to Nepal on 13th Mar'19.
SteelMint learned from market participants that Indian HRC export prices to Nepal have remained stable in recent bookings concluded for April end shipments.
Brazilian mining giant Vale (NYSE:VALE) announced this weekend that the Sul Superior Dam at the Gongo Soco mine is in a critical condition when it comes to stability. This, following the work of an independent auditor, hired to evaluate the state of the structure.
Australia - world's largest iron ore exporter has recorded rise in monthly export shipments in Feb'19, according to the vessel line up data maintained with SteelMint.