Saudi Arabia & Egypt Lift Bahrain Pellet Exports in May’19

Bahrain iron ore and pellet exports in May’19 recorded at 1.15 MnT, up 28% as against 0.9 MnT in Apr’19. On yearly basis, exports witnessed significant increase by 74% as compared to 0.66 MnT in May’18.

For CY19 (Jan-May’19) exports increased to two folds at 4.65 MnT as against 2.28 MnT in Jan-May’18.

• Saudi Arabia stood largest importer from Bahrain for the month at 0.52 MnT, up 44% against 0.36 MnT in Apr’19, followed by Egypt at 0.23 MnT and UAE at 0.21 MnT.
• DR grade pellets supply is a matter of concern especially for DRI producers in the Middle East and North Africa region such as Saudi Arabian steel major Emirates Steel and Ezz Steel and Beeshay Steel in Egypt who are mostly reliant on Vale shipments.
• Bahrain Steel – wholly owned company of Foulath Holding, has recently signed a 20 year agreement with Anglo American Marketing Limited for pellet supply for its plant in Hidd region. As per reports, demand for iron ore pellet is increasing majorly in Mena region with expected demand to reach 46 MnT by 2027. The contract will be a step ahead for the company to deliver quality product customers in the MENA region and beyond, relying on Bahrain Steel for their supply of DR pellets.
• Towards early Apr19, Bahrain Steel unveiled its plans to double its pellet production over the next 10 years. Last year in 2018, the company has achieved the landmark production and passed the milestone of having produced 100 MnT of pellets since its inception.
• State-owned pellet maker – Kudremukh Iron Ore Company Ltd (KIOCL) had signed a tripartite MoU towards the end of April’19 with Emirates Steel, Abu Dhabi, and Star Global, Dubai for sale of high-grade pellets to Emirates Steel.

Bahrain iron ore imports down 36% in May’19

Bahrain imports of iron ore witnessed at 0.9 MnT in May’19, as compared to 1.4 MnT in Apr’19. On yearly basis, the imports increased 38% as against 0.65 MnT in May’18.
For CY19 (Jan-May’19) imports witnessed at 5.35 MnT, up sharply against 3.09 MnT in CY18 (Jan-May’18).

Brazil stood the largest exporter of iron ore to Bahrain at 0.67 MnT down 41% M-o-M amid supply constraints from Vale. Canada stood second largest at 0.18 MnT followed by Turkey at 0.06 MnT.

Bahrain Iron Ore Import and Exports May’19 v/s Apr’19

Qty in MT
Source: Customs