Strong pellet demand from Chinese steel mills and absence of Brazilian pellets have resulted in sharp increase in Indian pellet exports this fiscal.
According to the customs data maintained with SteelMint, in the first seven months of FY’18 the Indian pellet exports have grown 36% Y-o-Y to 4.93 MnT pellets against 3.63 MnT exports in the same time period last year.
However, the Indian pellet exports moved up 1% M-o-M to 0.83 MnT in Oct’17 compared to 0.82 MnT in Sept’17. It’s recording a the demand for higher iron ore (pellets and lump) is on the rise relentlessly in China as a result of pollution control measures. Few other factors that have boosted Indian pellet exports are – absence of supplies from Brazilian Samarco and high pellet premium.
On yearly basis Indian pellet export increase by 11% in Sept’17 compared to 0.75 MnT last year same month.
Indian pellet export offers moved up in Oct’17 – Towards the beginning of Oct’17, Indian pellet export offers were assessed at USD 106/MT, FoB India. However by the month end it climbed to USD 110/MT, FoB.
BRPL remained the largest pellet exporter in Oct’17– BRPL remained the largest exporter for Oct’17. It has exported 0.22 MnT pellets in Oct’17. Other major exporters were Rashmi Metaliks (0.19 MnT), Bagadiya Brothers (0.11MnT), Essar Steel (0.10 MnT) and JSPL (0.10 MnT).
Pellet Exports from Paradeep port increased more than twice in Oct’17 – Pellet exports from Paradeep Port were recorded highest at 0.46 MnT in Oct’17 and increased significantly M-o-M compared to 0.22 MnT in Sept’17 . Other major ports for Indian pellet exports in Oct’17 were – Dhamra (0.25 MnT), Haldia (0.06 MnT), Mangalore (0.05 MnT).
All Indian pellet export shipments in Oct’17 were directed to China – China seems to be the only destination for the Indian iron Pellet makers in Oct’17 month also. It has recorded 2% increase M-o-M to 0.83 MnT in Oct.’17 compared to last month Sept’17 which was 0.82 MnT.
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