India’s pellet export shipments were recorded at 1.3 million tonnes (mn t) in Jun’21, as per data maintained with SteelMint. The shipments fell by 5% m-o-m as against 1.37 mn t in May’21 on limited offers in the market.
Decent bookings were made in the month of May but which were shipped in Jun. This kept the volumes largely stable m-o-m.
However, vessel availability, port delays and added costs related to 21-28 days for quarantine discharge/clearing seaborne Indian pellets kept buyers less active for most of the month in Jun and hence July export numbers are expected to see a considerable decline.
SteelMint’s assessment for Indian pellet exports (Fe 64%, 3% Al) recorded a rise to $227/t, FoB India in Jun’21 as against $220.5/t, FoB India in May’21. Total pellet inventory at major Chinese ports decreased to 3.5 mn t in mid-Jun, as per data maintained by SteelHome.
The inventory is at its lowest level since SteelMint began maintaining data in Jul’20. Falling port-side inventories have kept seaborne pellet prices supported in China.
Also, stricter production curbs have raised the demand for low Al pellets, thus widening the price gap between standard grade and low Al pellets, sources informed.
Pellet exports to China down
China continued to remain the largest importer of Indian pellets in Jun’21 at 1.06 mn t, up by 18% as against 0.89 mn t in May’21. South Korea stood as the second-largest importer at 0.13 mn t followed by Oman at 0.05 mn t.
Shipper-wise exporters in Jun’21
Rashmi Metaliks was the largest pellet exporter in Jun’21 at 0.26 mn t, down against 0.29 mn t in May’21. KIOCL stood as the second-largest exporter at 0.21 mn t followed by BRPL at 0.17 mn t.
Paradip Port accounts for 33% of total exports
In Jun’21, exports from Paradip Port stood at 0.44 mn t with 33% share, down marginally m-o-m. Dhamra Port was second with 0.33 mn t and Mangalore Port was third at 0.22 mn t.
Outlook
Considering comparatively lower bookings in Jun, Jul’21 export shipment numbers may witness a fall. However, with domestic sales turning subdued and rising iron ore prices and futures, pellet makers are active in the export market for Aug’21 shipments.
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