China Pellet Imports Down by 17% in Jun’16

China, the world’s largest iron ore consumer, imported around 0.97 MnT pellets in Jun’16 against 1.17 MnT pellets in May’16. Imports significantly drop down by 17% M-o-M.

However, if Y-o-Y comparison is done, country’s pellet imports in Jun’16 is significantly down by 62.6% against Jun’15.

In H1 2016, the country imported around 7.32 MnT pellets. However, in 2015, the country imported 12.04 MnT pellets in the same consecutive months. China mainly imports pellets from Ukraine, Brazil, Australia, India etc.

India-the largest pellet exporter in June’16

India is actively exporting pellets to China starting FY17. Strong Chinese pellet demand, favorable global market conditions as well as rising pellet premium have made Indian pellet exporters to conclude more export deals.

In Jun’16, India exported the highest quantity of pellet to China. Around 325,125 MT of pellets were exported in the month of June’16. However, in H1 2016, India exported around 575,503 MT pellets to China.

Restriction in the usage of sinter as a feed stock have compelled Chinese steel makers to either use pellets or lumps instead of sinter. As the pellet demand is strong, India will likely to increase its pellets exports to China due to less transition as well as transportation costs.

Country-wise pellets imports to China in June’16

Quantity in MT
Source: SteelMint