Imports of Iron Pellet to the Northwestern region of India i.e. at Kandla and Mundra Port in Gandhidham city in the state of Gujarat, dropped by 63% M-o-M in July 2013.
A total of only 25,000 tonnes of Pellets was imported in the previous month as compared to 68,300 tonnes imported in June 2013.
A sharp fall in imports was seen at Mundra Port which received the material from Australia, followed by Kandla Port which received Pellets from countries such as Middle East and Europe.
Comparison of total quantity of Pellets received in July and June:
At Kandla Port:
From Middle East (Bahrain) July 4,000 MT, Down 57.9% (5,500 MT) M-o-M
June = 9,500 MT
From Europe (Russia) July = 20,000 MT, Down 54.3% (23,800 MT) M-o-M
June = 43,800 MT
At Mundra Port:
From Australia July = 1,000 MT, Down 93.3% (14,000 MT) M-o-M
June = 15,000 MT
SteelMint thinks that sliding Indian currency at 60-61 levels against per US dollar mark in the past couple of months restricted imports, coupled with low availability from international suppliers and limited requirement of Sponge iron units, especially for the standalone ones.
Finished steel demand as well as prices did not pick up and hence, the Sponge iron making plants were utilizing minimum installed capacity to maintain operations.
After a Brazilian based supplier opted to close down the unit owing to shortage of the material, few others received booking orders for long term contracts on an annual requirement basis.
Demand for imported Pellet is likely to come down in the quarters ahead due to increase in Indian domestic market supply.
But, better quality and high yield from imported Pellet would not offset imports completely in the long run.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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