Indian pellet export shipments were recorded at 1.33 mn t in Apr’21, as per data maintained with SteelMint. Exports fell by 8% as against 1.44 mn t in Mar ’21. On a yearly basis, exports picked up compared to 1.22 mn t exports in Apr’20.
Indian pellet exports to China down by 29% in Apr’21
China continued to remain the largest importer of Indian pellets in Apr’21 at 0.89 mn t, down by 29% as against 1.26 mn t in Mar’21. Towards early Mar’21, Indian pellet export bookings had slowed down on sharp fall in futures after Chinese Govt. announced stricter pollution curbs and forced mills to lower utlization rates by 25-30%. Prices remained very volatile for April shipments for which bookings were done in Mar’21.SteelMint’s assessment for Indian pellet export index stood at $185/t, FoB India towards the beginning of Mar’21 and closed at $182/t FoB India for standard grade pellets.
Interestingly, Indian pellet export shipments to non-Chinese countries have witnessed an increase in Apr’21. Vietnam stood second largest importer at 0.16 mn t followed by Italy at 0.06 mn t.
Rashmi Metaliks stood largest exporter in Apr’21
Rashmi Metaliks was the largest pellet exporter in Apr’21 at 0.33 mn t, up against 0.18 mn t in Mar’21. BRPL stood second largest exporter at 0.27 mn t followed by KIOCL at 0.17 mn t.
Provisional data,qty in t
Source: SteelMint Research, Customs
Paradip port accounted for 35% of total exports
In Apr’21,exports from Paradip port stood at 0.46 mn t, against 0.64 mn t in Mar’21. Dhamra port stood second at 0.40 mn t and Mangalore port was third at 0.17 mn t.
Outlook:During the month, four more mills were downgraded in terms of their emission category. These four Tangshan steel mills have been downgraded to grade D, which means they might need to cut 50% emissions when the next round of emergency response comes. Rising emission standards may accelerate high grade ore requirements in near term.Market participants highlighted the spreads between standard grade and high grade pellets have started widening amid higher demand for low Al pellets in China.
Indian pellet export volumes are likely to remain supported in May’21 on active Chinese buying and higher export realizations.
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