The Indian pellet exports grew 42% for the month of Aug with the quantity of 0.93 MnT compared to the quantity of 0.66 MnT in Jul’17.
There was an increase of 10% Y-o-Y as well for the month of Aug exports compared the pellet exports in Aug’16 which were at 0.85 MnT then.
For the first 5 months of FY18 the Indian pellet exports have grown by 56% Y-o-Y with 3.23 MnT pellets against 2.07 MnT exports for the same period last fiscal.
JSPL was the largest pellet exporter in Aug’17 as well. The demand for Indian pellets in China sustained since the beginning of this fiscal and an increase in spot pellet premium have continued to push its export for the month of Aug’17.
The upward movement in India pellet market have had the repercussions on global steelmaking raw material market pushing the spot pellet premium at around USD 41.5/DMT, CFR China currently a 17% increase W-o-W which was USD 35.9/MT last week.
Pellet exports prices from India have climbed to almost 38 months high in the recent tender conducted by the manufacture.
According to market participants report to SteelMint, the last highest bid received was at around USD 121.5/MT, CFR China which is equivalent to USD 112-113/MT, FoB India.
This is higher by USD 7-8 against SteelMint’s last week assessment of Indian pellet export prices of USD 114-115/MT, CFR China.
The increased demand from China for high grade material has pushed the pellet prices to its record high in India. The Chinese manufactures are using high grade material to mitigate the increased coking coal prices resulting in favor of Indian pellet exporters.
The reduced use of sinter and environmental control policies in China have forced the industry buying turn to the better quality feeders to curb the hazardous levels of pollution. Moreover according to reports Beijing in its efforts to look green before “The National People’s Congress” in Oct’18 is believed to have ordered the mills to cut down on their sintering units nearby the capital, which has forced them to evaluate the other options like lump or pellet as feeders.
East India pellet makers continue to export pellets to China: East Coast pellet exporters continue to export pellets to China. Paradip 0.56 MnT with 60% share of total exports, Mangalore with 24% share at 0.22 MnT share followed by Dhamra with 0.10 MnT material 11% share and Haldia 0.05 MnT remaining 5% share.
JSPL exported 0.26 MnT in Aug’17: JSPL- exported 0.26 MnT pellets during Aug’17. The pellet maker had exported 0.20 MT pellets in Jul’17 and 0.41 MnT pellets in Aug’16.
KIOCL Exported 0.22 MnT in Aug’17: KIOCL has exported 0.22 MT pellets in Aug’17. The pellet maker had exported 0.10 MT pellets in Jul’17, there were no exports from KIOCL in the month of Aug last year.
BRPL Exported 114,660 MT in Jul’17: BRPL exported 0.20 MnT pellets during Aug’17. The pellet maker had exported 0.11 MT pellets in Jul’17 and 0.19 MnT pellets in Aug’16.
Other Exporters: Other exporters for the month of Jul’17 were Essar Steel (0.10 MT), Rashmi Metaliks (0.10 MT) and Bagadiya Brothers 0.05 MnT.
China- the largest export destination from India: India exported 0.66 MnT pellets to China which consists of around 71% share of total pellet exports from India in the month of Aug’17. The remaining 29% material was exported to South Korea, Oman and Japan.
India Pellet Imports: There were no pellet imports recorded for the month of Aug’17. The only shipment for the current fiscal was 45,860 MT pellets in Jul’17 exported from Russia by Essar Steel at Hazira port.
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