Indian Pellet Exports Up 19% in Aug’19

According to data maintained with SteelMint, Indian pellet export volumes in Aug'19 has been recorded at 1.42 MnT, up 19% on monthly basis as against 1.20 MnT a month ago. On yearly basis, exports increased sharply as compared to Aug'18 exports at 0.45 MnT.

Indian pellet exports in FY20 (Apr-Aug) depicted rise by almost two folds to 5.45 MnT compared to FY19 (Apr-Aug) at 2.84 MnT.

Why have Indian pellet export volumes picked up?

Global supply crises: The prolonged global supply crises caused due to Vale and Australian miners have pushed up the pellet exports from India. Also, Vale on 15th Aug’19 , reported that it has temporarily shut operations at its Viga concentration plant, which is part of newly acquired Ferous Resources do Brasil (acquired on 1st Aug’19), due to permit issues.

Increased production curbs: The production curb in China's Tangshan extended by two months from Aug’19 to Oct’19 resulted in increased pellet preference.

Indian pellet exports to China Up 29% in Aug’19

China continued to remain the largest importer of Indian pellets for Aug’19 at 1.25 MnT, up 29% as compared to 0.97 MnT in the previous month. Turkey stood second-largest importer at 0.06 MnT followed by South Korea 0.05 MnT.

Rashmi Metalik stood the largest pellet exporter for the month:

Rashmi Metalik marked the largest Indian pellet exporter for the month of Aug’19 at 0.30 MnT, up 28% compared to 0.24 MnT in July’19. BRPL exports recorded at 0.29 MnT, followed by JSPL at 0.25 MnT and Bagadiya Brothers at 0.16 MnT.

Dharma port accounted for largest export share for the month:

Pellet exports from Dharma port recorded highest in Aug'19 at 0.41 MnT against 0.46 MnT in July'19, followed by Paradip Port at 0.38 MnT (Up marginally M-o-M ), and Gangavaram at 0.27 MnT.

Outlook: Indian pellet export prices have come down by USD 20-25/MT in a month's time on falling global iron ore fines price and weakening steel prices. Towards end of Aug, Chinese mills depicted limited firm bids for pellets as mills increased dependence on lumps and domestic pellets over seaborne pellets amid falling steel prices.

Also, non-Chinese markets depicted rising interest in Indian pellets.Few deals were reported to Malaysia, Turkey etc