According to data maintained with SteelMint, Indian pellet export volumes for May’19 have been recorded at 1.19 MnT, up 34% on monthly basis as against 0.88 MnT a month ago.On yearly basis, exports increased sharply to almost twice as compared to May’18 exports at 0.40 MnT.
Why did Indian pellet exports picked up in May?
Demand from non-Chinese markets
The global pellet supply crises (Vale disaster & absence of Samarco) have led to non-Chinese market increase dependence on Indian pellets. Pellet exports from India for the month has witnessed rise to non-Chinese markets such as Turkey, South Africa and South Korea. While BRPL actively exported pellet vessels to Turkey; KIOCL exported to UAE, Oman and Essar Steel remained active in South Africa.
Firm Chinese demand
The iron ore inventory at major Chinese port has dropped for the month amid increased Chinese demand brought by global supply crises amid supply shortage from Vale. The inventory has fallen to 124.9 MnT towards last weekend as against 133.6 MnT towards beginning of May’19. The port stock is expected to drop down to around 120 MnT by June’19.
China continued to remain the largest importer of Indian pellets for the month with the quantity of 0.70 MnT, almost stable M-o-M. Turkey stood the second largest importer of Indian pellet at 0.12 MnT followed by South Africa at 0.06 MnT.
Country-wise Indian Pellet Export
| Country | May’19 | Apr’19 |
| China | 0.70 | 0.71 |
| Turkey | 0.12 | – |
| South Africa | 0.06 | – |
| UAE | 0.06 | – |
| Oman | 0.06 | – |
| South Korea | 0.06 | – |
| Others | 0.14 | 0.17 |
| Grand Total | 1.19 | 0.88 |
Qty in MnT
Source: SteelMint Stats, Custom
Provisional Data
JSPL remains the largest Indian pellet exporter
JSPL stood the largest pellet exporter in May’19 with exports at 0.2 MnT, up by two folds as against 0.1 MnT in Apr’19.
Rashmi Metaliks stood second largest exporter at 0.19 MnT (up 69% M-o-M), followed by BRPL at 0.18 MnT
Other exporters were KIOCL, Jindal SAW, Bagadiya Brothers and others.
Dharma port accounted for largest export share for the month:
Pellet exports from Dharma port recorded highest in May’19 at 0.37 MnT against 0.17 MnT in Apr’19, followed by Paradip port at 0.35 MnT (down 13%), Mangalore port at 0.18 MnT (up 9%) and Gangavaram at 0.10 MnT.
Outlook : As per SteelMint analysis, Indian pellet exports to non-Chinese market may pick up amidst rising deals to export pellet. KIOCL has signed a tripartite MoU with Emirates Steel, Abu Dhabi, and Star Global, Dubai for sale of high-grade pellets to Emirates Steel. BRPL is exporting pellets to Turkey and as per sources, pellet maker is likely to supply total quantity of around 500,000 MT pellets to Turkey.
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