Indian pellet exports were registered at 5.5 MnT in FY17 during Apr-Dec’16. Pellet exports have registered an increase of 800% Y-o-Y as 0.61 MnT pellet was exported during the same time period last year.
Jindal Steel & Power(JSPL), turned out to be the largest pellet exporter. Due to increased pellet demand from China and high pellet premium which gave Indian pellet exporters better realization in exports as compared to domestic market.
In Dec’16, pellet exports were registered at 0.89 MnT against 1.04 MnT in Nov’16. However, on Y-o-Y basis, there is a growth of 100% as pellet exports remained nil in Dec’15.
East India pellet makers aggressively exporting pellets to China: East Coast pellet exporters are aggressively exporting pellets to China. Paradip, Dhamra and Haldia are the chief exporting ports. China has turned out to be the largest destination for Indian pellets.
Spot pellet premium remained high amid higher coking coal prices: Spot pellet premium during Apr-Dec’16 remained at higher level due to sudden hike in coking coal prices at USD 32/MT which gave better realization to Indian pellet exporters.
However, it should be noted that currently spot premium have moved down to USD 21.5/MT which has made Indian pellet export offers less and currently they are hovering in the range of USD 95-97/MT, CFR China.
JSPL- Exported 1.76 MnT during Apr-Dec’16: Jindal Steel & Power (JSPL) has exported 1.76 MnT pellets in FY17 during Apr-Dec’16. It is to be noted that JSPL pellet exports in FY16 remained nil.
BRPL exported 1.30 MnT during Apr-Dec’16: BRPL- the second largest pellet exporter has exported 1.30 MnT pellets during Apr-Dec’16. The pellet maker exported only 48,000 MT in FY16.
Essar Steel, has exported 0.99 MnT followed by KIOCL (0.57 MnT), Rashmi Metaliks (0.56 MnT), Bagadiya Brothers (0.20 MnT), Arya Iron & Steel (0.14 MnT).
China- the largest export destination from India: India exported 4.8 MnT iron ore to China which contributes around 87% of total pellet exports. On the other side, exports to Oman were around 6.3%, Japan 3.2%, Iran 1% and UAE 1%.
All the pellet export shipment made in the month of Dec’16 was made to China and Japan. Out of the total quantity exported in Dec’16, 857,610 MT (95.5%) exported to China and 39,500 MT (4.4%) to Japan.
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