China’s pellet imports witnessed a decline of 52% in Aug’21 as against 4.27 mn t in Aug’20. Imports dropped due to higher preference for domestic iron ore pellets in the market. Imports from India fell from 1.2 mn t in Aug’20 to 0.8 mn t in Aug’21.
However, total imports of iron ore pellets increased 10% m-o-m to 2.07 million tonnes (mn t) in Aug’21 against 1.88 mn t recorded in Jul’21, according to the General Administration of Customs. Increase in imports was due to sustained steel production and sinter cuts in China. Chinese mills preferred high grade ore like pellets/lumps over fines.
Imports from India fall
India continued to be the largest iron ore pellet exporter to China in Aug’21 at 0.83 mn t against 1.03 mn t in Jul’21.
Pellet imports drop 49% y-o-y in Jan-Aug’21
Total imports of iron ore pellets dropped 49% y-o-y to 16.76 million tonnes (mn t) in Jan-Aug’21 against 32.84 mn t recorded in the corresponding period last year (CPLY).
Iron ore pellet imports from India fell by 35% to 6.23 mn t during Jan-Aug’21 as against 9.63 mn t in CPLY. Bid-offer disparities and comparatively better realizations in the domestic market resulted in fall in volumes from India from 1 mn t in Jul’21 to 0.83 mn t in Aug’21.
Imports from Australia rise – Australia was the second-largest pellets exporting country for China in Aug’21 with 0.18 mn t as against 0.08 mn t in the previous month.
Monthly average pellet prices decrease in Aug’21 – SteelMint’s pellet export index (Fe 64%, 3% Al, FoB east coast) fell from $221/tonne (t) assessed towards the middle of July to $156/t assessed towards the middle of Aug’21. With prices in exports falling sharply, Indian pellet makers turned aggressive in domestic sales,quoting higher than in exports.
The spot prices of the premium Fe65% grade pellets were assessed at $38.55/t towards the end of August as against $51.35/t assessed at the beginning of the month.
China pellet imports
Fig in mn t
Source: SteelMint
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