India’s pellet export shipments were recorded at 0.24 million tonnes (mn t) in Oct’21, hitting over 5-year low, as per data maintained with SteelMint. The shipments fell by 50% m-o-m compared to 0.47 mn t in Sept’21.
China continued to remain the largest importer of Indian pellets in Oct’21 at 0.07 mn t, down by 58% as against 0.17 mn t in Sept’21. The steel production cuts in China triggered a sharp contraction in iron ore pellet export shipments in recent months. This has lowered demand for raw material which, in turn, pulled prices down. China’s Hebei province, the steelmaking hub located in the northern part of the country, announced new restrictions on sintering operations in the Tangshan region due to intensified production curbs in the country, which will weaken the demand for iron ore in China. The country churned out 73.8 mn t of crude steel in September, a 21.2% decline against CPLY.
Malaysia and Brazil stood as the second-largest importers for Indian pellets at 55,000 t each followed by Indonesia at 53,000 t.
Pellet export prices drop sharply
SteelMint’s pellet export index (Fe 64%, 3% Al, FOB east coast) fell to $115/tonne (t) as assessed in the middle of Sept’21 compared to $155/t assessed towards the middle of Aug’21. With export prices falling sharply, Indian pellet makers turned aggressive in domestic sales, quoting higher than in exports.
Shipper-wise exporters in Oct’21
Southern India-based KIOCL was the largest exporter in Oct’21 at 0.11 mn t, up against 0.05 mn t in Sept’21. Rashmi Metaliks stood as the second largest exporter at 0.07 mn t followed by BRPL at 0.05 mn t.
Mangalore Port accounts for 46% of total exports
In Oct’21, exports from Mangalore Port stood at 0.11 mn t with 46% share, up against 0.05 mn t in the previous month. This was followed by Dhamra Port with 0.07 mn t and Paradip Port at 0.05 mn t.
Outlook
In view of lower bookings in Oct’21, the number of deliveries for November are likely to decline further.
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