Indian pellet export have registered a growth of 92% in Aug’16. Indian pellet exporters have got an excellent opportunity to export pellet substantially to China, owing to increased pellet premium and better realization in exports.
In Aug’16, total 745,400 MT pellet been exported in the month of Aug’16 against 387,370 MT in the month of Jul’16. Jindal Steel & Power Limited (JSPL), Essar Steel, BRPL are key pellet exporters of Indian pellets to China in Aug’16.
Out of the total pellet exports in Aug’16, 92% of total pellet exports have been made to China and very nominal i.e. 0.07% to Oman.
Pellet premium have hit all time high. Currently, pellet premium has crossed USD 30/MT mark and is assessed at USD 34/MT, upon which Indian pellet gears up.
The sudden hike in pellet premium which usually stood at USD 17-18/DMT last year and now have touched to a level of USD 34/MT has made Indian pellet competitive in the global market.
Chinese steel makers are chasing high-grade ore to meet environmental standards because of restrictions imposed by the Chinese government to use sinter as raw material feed. Since steel makers are forced to use lumps and pellets as raw material feed, it has created a strong demand for Indian pellets in China.
Indian pellet exports have witnessed a remarkable increase on a Y-o-Y basis. Total 832,300 MT pellets were exported in FY16. However, in the first five months of FY17, Indian pellet exports were registered at 1.96 MnT.
Pellet Exports from India in Aug’16
| Date | Shipper | Vessel Name | Quantity (MT) | Price | Port | Destination Country |
| 4 Aug’16 | Essar Steel | Theoskepasti | 49,500 | 66.4 | Paradip | China |
| 5 Aug’16 | JSPL | Star Artemis | 55,000 | 60.1 | Paradip | China |
| 7 Aug’16 | BRPL | Jal Pari | 73,450 | 64 | Paradip | China |
| 8 Aug’16 | JSPL | Singapore Bulker | 50,100 | N/A | Paradip | China |
| 12 Aug’16 | Essar Steel | Kanchana Naree | 50,000 | 76.5 | Paradip | China |
| 13 Aug’16 | JSPL | Teton | 50,100 | 59.9 | Paradip | China |
| 20 Aug’16 | JSPL | Peney | 80,000 | N/A | Gangavaram | China |
| 23 Aug’16 | BRPL | Stenia Colossus | 57,000 | 68.4 | Paradip | China |
| 25 Aug’16 | JSPL | V Petrel | 51,000 | 72.2 | Paradip | China |
| 28 Aug’16 | BRPL | Soho Trader | 60,500 | 69.3 | Paradip | China |
| 28 Aug’16 | JSPL | Odysseus N | 68,000 | N/A | Gangavaram | China |
| 30 Aug’16 | Rashmi Metaliks | Jag Roopa | 26,850 | 76 | Haldia | China |
| 30 Aug’16 | Rashmi Metaliks | Union Explorer | 21,100 | 75.7 | Haldia | China |
| 30 Aug’16 | JSPL | Eolus | 52,800 | N/A | Dhamra | Oman |
| Total | 745,400 |
NA: Not Available
Prices in USD/MT, FoB India
Provisional data
Source: SteelMint Stats, Customs
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