India’s pellets export shipments were recorded at 1.06 million tonnes (mnt) in May 2022, a fall of 24% m-o-m as against 1.39 mnt in April 2022, according to the vessel line-up data maintained with SteelMint.
Exports to China up 13%
China continued to be the largest importer of pellets from India at 0.53 mnt in May 2022. Export volumes increased by 13% m-o-m compared to 0.47 mnt in April.
Turkey occupied the second position among the top importers at 0.13 mnt followed by Indonesia and Vietnam at 0.11 mnt and 0.10 mnt, respectively.
Shipper-wise exporters
AM/NS India was the largest pellet exporter in May at 0.44 mnt and the shipments were up compared to 0.34 mnt in the previous month.
Rashmi Metaliks stood as the second-largest exporter at 0.16 mnt followed by BRPL and Godavari Power at 0.15 mnt and 0.14 mnt, respectively.
Higher domestic realisations
SteelMint’s pellet export index (Fe 64%, 3% Al, FOB east coast) stood at $145/t (INR 11,256/t) in mid-April. On the other hand, SteelMint’s domestic pellet index was recorded at INR 12,100/t ($156/t), DAP Raipur in mid-April. With domestic prices rising, Indian pellet makers turned aggressive in domestic sales, amidst lower export realisations.
Outlook
India’s pellet export bookings are likely to remain on the lower side as the market has turned silent after the government’s recent imposition of the steep 45% export duty on iron ore pellets from none previously. There are presently not many active offers from Indian players as they have adopted a wait-and-watch approach.
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