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    If pig iron and steel prices can rise by $15-20/mt it may be better to limit additional pellet sales, as the steel price would cover the increase in the pellet premium. Russia's larger iron ore miner Metalloinvest shipped 58% of its iron ore pellets externally in 2016, while in Q3 2017, external pellet sales had fallen to 48%.

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    The difference between this and other cost components is that if iron ore prices or pellet prices reverse, this immediately reverses as well. These are formula-based.

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