India’s monthly pellet exports have crossed 1 MnT mark in Nov’16 highest since Apr’13. Indian pellet exports have registered a growth of 15.7% M-o-M due to increased pellet demand from China, high pellet premium which gave Indian pellet exporters a potential opportunity to export and gain healthy profit margins.
In Nov’16, Indian pellet exports were registered at 1,047,600 MT against 747,755 MT in Oct’16. However, on Y-o-Y basis, pellet exports have shown tremendous growth as exports remained nil in Nov’15.
It is noted that East Coast pellet exporter are aggressively exporting pellets to China. They chiefly exports from Paradip, Dhamra and Haldia Port. In addition, pellet export offers have also moved up significantly on monthly premises amid sharp increase in spot pellet premium.
Spot pellet premium moves up amid rising coking coal prices: Spot pellet premium in the past two weeks has remained stable at USD 29.5/MT. It should be noted that currently Indian pellet is selling at a discount up to USD 4/MT, on spot pellet premium at USD 25-26/MT due to the ratio of high silica/alumina. The rise in pellet premium was majorly due to higher coking coal prices which are hovering at USD 298/MT, FoB Australia.
Rising pellet demand in China: Due to the halt in Brazilian Samarco’s operations which supplies around 10-11 MnT pellets every year to China, there is a wide gap created in demand and supply of pellets in China. India, being a neighboring country is trying to fill this gap and create more business for Indian pellet exporters.
Indian pellet exports in Nov’16
| Date | Shipper | Vessel Name | Quantity (in MT) | FoB Prices (in USD/MT) | Loading Port | Country |
| 6 Nov’16 | Essar Steel | Kishore | 101,000 | 82.9 | Paradip | China |
| 7 Nov’16 | BRPL | Jal Pari | 71,500 | N/A | Paradip | China |
| 9 Nov’16 | Bagadiya Brothers | Marianee Stoeger | 79,500 | 77.9 | Dhamra | China |
| 12 Nov’16 | KIOCL | Serina Jassica | 55,000 | N/A | Mangalore | China |
| 13 Nov’16 | BRPL | Intrepid | 51,200 | 77.9 | Paradip | China |
| 14 Nov’16 | KIOCL | Silver Star | 65,700 | N/A | Mangalore | Uae |
| 15 Nov’16 | Rashmi Metaliks | Coreocean Ol | 22,000 | 75 | Haldia | China |
| 15 Nov’16 | JSPL | Ilia | 50,000 | 79.4 | Paradip | China |
| 16 Nov’16 | Essar Steel | Sfl Humber | 52,500 | 84.1 | Paradip | China |
| 17 Nov’16 | Arya Iron & Steel | Theometor | 50,000 | 79.4 | Dhamra | Japan |
| 18 Nov’16 | Bagadiya Brothers | Moonray | 50,000 | 75.7 | Dhamra | China |
| 18 Nov’16 | JSPL | New Era | 48,000 | 75 | Dhamra | Oman |
| 19 Nov’16 | BRPL | Sitc Taishan | 56,850 | 75.7 | Paradip | China |
| 22 Nov’16 | Essar Steel | Am Ocean Pride | 50,000 | 84.1 | Paradip | China |
| 23 Nov’16 | JSPL | Angel B | 50,000 | 81 | Paradip | China |
| 27 Nov’16 | Rashmi Metaliks | Shou Chen Shan | 17,500 | N/A | Haldia | China |
| 28 Nov’16 | Rashmi Metaliks | Dubai Sun | 60,000 | N/A | Dhamra | China |
| 28 Nov’16 | BRPL | Dynasty Shang | 55,350 | N/A | Paradip | China |
| 29 Nov’16 | Rashmi Metaliks | Shou Chen Shan | 36,500 | 75.7 | Dhamra | China |
| 30 Nov’16 | Jindal Steel | E R Bergamo | 25,000 | N/A | Haldia | China |
NA: Not Available
Prices in USD/MT, FoB India
Provisional data
Source: SteelMint Stats, Customs
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