Offers of Indian iron ore pellet cargoes rose sharply in the Chinese market, with Cyclone Fani expected to disrupt supplies from the key producing state of Odisha.
The Argus-assessed weekly 64pc Fe, 3pc alumina pellet price rose by $3.5/dmt from last week to $122/dmt cfr China today. The 2pc alumina variant was assessed at $126/wmt.
A deal for 64pc Fe, 3pc Al Jindal Steel pellet cargo was done at $122/dmt.
Offers for BRPL and Jindal Steel 64pc basis, 3pc alumina cargoes were heard at $125-126/dmt cfr China.
Odisha was hit by the severe Cyclone Fani over the weekend. Electricity supply in most parts of the state has not yet been restored, while mobile connectivity remains patchy, said two Odisha-based pellet industry executives. There will be delays in shipping pellet cargoes and conditions are unlikely to return to normal this week.
India's three largest pellet exporters Jindal Steel, BRPL and Rashmi Metaliks source pellet from Odisha state and ship it through major ports such as Paradip and Dhamra. Both of these ports have restarted operations.
In the portside market, a deal for 64pc Indian pellet was done at 950 yuan/wmt at Tianjin port, a seaborne-equivalent of $121/dmt. An Iranian pellet cargo was sold at Yn990/wmt at Rizhao port. A cargo of 64pc BRPL was offered at Yn1,020/wmt.
