Indian Pellet Exports Increase 38% in FY20

Indian pellet export volumes for the fiscal year FY’20 was recorded at 12.62 MnT, up 38% as against 9.16 MnT in FY’19, according to data maintained with SteelMint.
On a monthly basis, pellet exports picked up 23% in Mar’20 to 101,618 MT as against 82,681 MT in Feb’20.

Which all factors led to increase in Indian pellet export volumes?

1. Global material shortage:
The global material availability constraints amid Vale dam disaster and Australian cyclone paved way for Indian pellet exports market. The two events of dam disaster and Cyclone led the Australian and Brazilian miners to halt production at various mines and dams consequently the miners reduced pellet production guidance for the year.

Brazil’s National Mining Agency (ANM) as on Thursday (2nd Apr) said it would halt operations at 47 mining dams that failed to certify stability criteria, which includes about 25 dams of Vale SA.

2. Chinese demand for high grade ore:
The rising production curbs in China amid rising pollution concerns during the fiscal have resulted in increased imports from India. The production curb in Tangshan were extended by two months from Aug’19 to Oct’19. Towards early Oct’19 mills in Tangshan were ordered to reduce sintering, pelletizing and blast furnace operations from Oct. 10 until Oct. 31. The rising production curbs due to winter heating have resulted in increased preference for high grade ore in Chinese market.

Indian exports to China up 54% in FY20
China stood the largest importer of Indian pellet in FY’20 at 10.29 MnT, up 54% against 6.69 MnT in FY’19. Oman stood second largest importer at 0.55 MnT, followed by South Korea at 0.44 MnT and Turkey at 0.36 MnT.

BRPL remained the largest pellet exporter
BRPL marked the largest Indian pellet exporter for the year at 2.91 MnT, up 26% compared to 2.31 MnT in FY’19. Rashmi Metaliks stood second largest exporter at 2.11 MnT (up almost two folds Y-o-Y) followed by JSPL at 2.07 MnT (up 13% on yearly basis).

Qty in MnT, Provisional data,
Source: SteelMint Research, Customs

Paradip port stood largest exporting port in FY20:
Pellet exports from Paradip port recorded highest in FY’20 at 4.34 MnT down marginally against 4.48 MnT in FY’19, followed by Dharma Port at 3.85 MnT (up 70% Y-o-Y), and Mangalore at 1.95 MnT.