Indian Pellet Exports Up 35% in Apr, AM/NS Tops the List*

Indian pellet export volumes for the first month of the fiscal FY’21 recorded at 1.17 MnT, up 35% as against 0.87 MnT in Mar’20, according to data maintained with SteelMint. On an yearly basis, pellet exports picked up 33% in Apr’20 as against 0.88 MnT in Apr’19.

What led to rise in Indian pellet exports for the month?

1. Falling domestic demand: The pandemic COVID-19 led to country wide closure, in turn affecting the domestic needs by the steel mills. Hence, the off take by domestic suppliers fell significantly supporting exports for the month.

2. Production at Odisha based plants continued : During lock-down, pellet producing companies primarily located in Odisha, continued their production although it was at low capacities, SteelMint learned from its sources. So the companies turned towards exports to offset the production.

Indian pellet exports to China up 10% in Apr’20*
China stood the largest importer of Indian pellet for Apr’20 at 0.96 MnT, up 10% against 0.87 MnT in Mar’20. Oman stood second largest importer at 0.11 MnT followed by Malaysia at 0.05 MnT.

AM/NS marked the largest pellet exporter*
Arcelor Mittal Nippon Steel marked the largest pellet exporter at 0.36 MnT followed by BRPL at 0.29 MnT (up 68% M-o-M) and JSPL at 0.20 MnT (up almost two folds M-o-M)

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

Paradip port stood largest exporting port in Apr’20*:
Pellet exports from Paradip port recorded highest for the month at 0.70 MnT up sharply against 0.28 MnT in Mar’20, followed by Dhamra Port at 0.26 MnT (down 11% M-o-M), and Vizag at 0.11 MnT.

Outlook: Indian pellet export volumes are likely to increase in May’20 looking at aggressive bookings made by producers.

*Corrected