China: Pellet imports fall over 35% in Apr’22 on weak demand from steel mills

China’s pellet imports decreased by 36% m-o-m in April 2022 to 1.28 million tonnes (mnt) as against 1.98 mnt in March 2022. Cumulative import volumes in January-April 2022 were recorded at 6.86 mnt.

Pellets shipments into China decreased m-o-m on inactive bookings by traders in anticipation of weak demand from Chinese mills and preference to low/medium grade ore on squeezing steel margins.

India largest exporter to China

India remained as the largest iron ore pellet exporter to China at 0.39 mnt, accounting for 30% of the latter’s total imports in April.

Kazakhstan was the second largest pellet exporter at 0.19 mnt followed by Ukraine at 0.09 mnt.

China’s pellet imports in April and March

Fig in mn t
Source: SteelMint

Market highlights-

• Logistical constraints and reduction in buying activities due to Covid-19 lockdown in China weighed on imports in the middle of the month.
• Trading activities remained subdued. SteelMint’s pellet export index (Fe 64%, 3% Al, FOB east coast) fell from $165/t in early-April to $145/t in end-April.