Indian pellet export shipments in the month of Sep’20 were recorded at 0.78 mn t, as per data maintained with SteelMint. On a monthly basis exports decreased 34% as against 1.19 mn t in Aug’20. On a yearly basis, pellet export shipments dropped by 29% as against 1.1 mn t in Sep’19.
Factors behind fall in export volumes –
- Indian pellet makers remained focussed on domestic sales due to higher realizations than in exports. SteelMint’s domestic pellet price assessment for Barbil (Odisha) increased from INR 6,900/t (loaded to wagons) in Aug’20 to INR 8,000/t in Sept’20. Realizations in domestic market were higher than those in domestic by around INR 1,000/t.
- Also amid heated discussions of pellet export duty, exporters/traders are little skeptical about the future market therefore they are not much active in concluding fresh deals.
- Scheduled maintanence shutdown at a pellet plant in Odisha also lowered volumes for exports
- Also, easing Brazilian supplies was another reason behind lower pellet buying from Chinese mills. Notably, Brazil’s iron ore & pellet export volumes stood at 37.9 mn t in Sep’20, up 21% as against 31.3 mn t in Aug’20, according to trade statistics released by Brazil customs. The exports for the month stood over 4.5 years high as the levels were last witnessed in Dec’15 .
Indian pellet exports to China down 26% in Sep’20
China remained the largest importer of Indian pellets in Sep’20 at 0.66 mn t, down 26% m-o-m. Malaysia stood second largest importer at 0.08 mn t followed by Oman and Vietnam at 0.02 mn t each.
JSPL stood the largest pellet exporter
JSPL stood the largest pellet exporter for the month at 0.27 mn t (up 45% m-o-m) followed by KIOCL at about 0.13 mn t (down 18% m-o-m) and Sri jagannath steel power at 0.08 mn t.
Qty in mn t, Provisional data,
Source: SteelMint Research, Customs
Paradip port accounted for 48% of total monthly export
In Sep’20, exports from Paradip port stood at 0.38 mn t (up by 13% m-o-m) followed by Dhamra at 0.16 mn t and Mangalore at 0.13 mn t.
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