India’s pellet export shipments were recorded at 1.34 mn t in May’21, as per data maintained with SteelMint. Exports fell marginally by 8% as against 1.46 mn t in Apr’21 on limited offers in the market owing to uncertainty prevailing amidst quarantine measures in China for Indian cargoes.
Also, vessel availability, port delays and added costs related to discharge/clearing seaborne Indian pellets kept buyers less active for most of the month.
On a yearly basis, exports dropped compared to 2.13 mn t in May’20. It may be recalled, in May’20, Indian pellet exports had surged amid lower capacity utilisations by sponge and steel units due to the first wave of Covid.
SteelMint’s assessment for Indian pellet exports decreased from $243/tFoB India towards mid-May’21 to about $213/tFoB India towards month-end. Indian pellet export prices declined in the second half of May after global iron ore prices plunged from 10-year high levels amid a steep decline in futures.
Pellet exports to China down
China continued to remain the largest importer of Indian pellets in May’21 at 0.87 mn t, down by 15% as against 1.03 mn t in Apr’21. Oman stood the second largest importer at 0.17 mn t followed by Indonesia at 0.12 mn t.
Rashmi Metaliks largest exporter in May’21
Rashmi Metaliks was the largest pellet exporter in May’21 at 0.29 mn t, down against 0.36 mn t in Apr’21. KIOCL stood the second largest exporter at 0.28 mn t followed by BRPL at 0.27 mn t.
Paradip Port accounts for 34% of total exports
In May’21,exports from Paradip Port stood at 0.46 mn t, up marginally m-o-m. DhamraPort stood second at 0.32 mn t and Mangalore Port was third at 0.28 mn t.
Outlook: Indian pellet export volumes may remain slightly lower in June on extended Covid-19 precautionary measures at Chinese ports which have weighed on seaborne pellet prices. Also, market participants were increasingly concerned about extended waiting period for clearance of Indian pellets and fines cargoes and higher demurrages. In addition , cyclones and monsoon related disturbances had also created slight delays at eastern India ports.
However,a sharp decline in pellet exports volumes may not happen because of renewed buying interest for Indian pellets seen from China, South Korea etc.
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