Indian pellet export shipments were recorded at 13.32 mn t in CY’20, as per data maintained with SteelMint. Exports were majorly stable as against 13.02 mn t in CY’19.
Indian pellet exports remained on higher side during Q2 CY’20 due to a variety of reasons. Dull Indian domestic demand due to the pandemic, increased Chinese demand, supply constraints from Brazil amid rising COVID cases along with closures at Timbopeba and Malaysian distribution center for half of the quarter had their impact on global trade.
However, with gradual unlocking measures adopted in India, steel demand picked up resulting in improved domestic pellet usage. Pellet prices in domestic market surged, backed by tight availability of high-grade iron ore in Odisha, as majority of auctioned mining leases were still struggling to resume production. SteelMint’s domestic pellet price assessment for Barbil increased from INR 5,625/t (loaded to wagons) in Jun’20 to INR 11,095/t (loaded to wagons) in Dec’20.
In addition to it, amid heated discussions of pellet export duty, some of the exporters/traders were a little hesitant on concluding export deals.
Indian pellet export volumes to China up 11% in CY’20
China continued to remain the largest importer of Indian pellets in CY’20 at 11.08 mn t, up 11% y-o-y. Malaysia stood second largest importer at 0.74 mn t followed by Oman at 0.61 mn t.
Shipper-wise exports in CY’20
BRPL stood the largest pellet exporter for the year CY’20 at 2.69 mn t, down 11% against 3.03 mn t in CY’19. JSPL stood second largest exporter at 2.37 mn t followed by Rashmi Metaliks at 1.84 mn t.
Qty in mn t, Provisional data,
Source: SteelMint Research, Customs
Paradip port accounted for 40% of the total export
In CY’20, exports from Paradip port stood at 5.39 mn t, up 13% against 4.75 mn t in CY’19. Dhamra port stood second largest at 3.37 mn t and Mangalore port at 1.79 mn t.
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