Indian Pellet Exports Decline 22% in Oct’18

According to the vessel line up data maintained with SteelMint, Indian pellet exports for the month of Oct’18 witnessed a decline of 22% M-o-M to 0.74 MnT, as against 0.95 MnT in Sept’18. In the month of Oct, Indian pellet export price decreased sharply by USD 15/MT M-o-M to USD 126/MT, FoB India against a month before at USD 141/MT, FoB. Amidst uncertainty on sintering and production cuts in the Chinese market, Chinese mills are preferring fines over pellets resulting in limited inquiries for pellet export.

On yearly basis, pellet export decreased 10% against 0.83 MnT in Oct’17. During Apr-Oct FY’19 Indian pellet export down by 8% to 4.53MnT as against 4.93 MnT in the same period last fiscal FY’18.

Spot pellet premium fell by USD 16/DMT on increased Chinese domestic pellet supply

Spot pellet premium for Fe 65% grade pellets assessed at USD 71.35/DMT, CFR China this week, down by USD 16/DMT M-o-M against USD 87.12/DMT a month before. Imported pellet buying interest of Chinese mills was learned to remain weak amid increased supply of Chinese domestic pellets, resulting in less pellet export trades from India.

Shipper-wise Indian pellet exports in Oct’18 -:

Bagadiya Brothers stood the largest exporter for the month of Oct’18 at 0.20 MnT (up 30% M-o-M), accounting 27% of total Indian pellet export share, followed by Rashmi Metaliks at 0.11 MnT (down by 59%), Essar steel at 0.11MnT (up almost in two-fold) and JSPL 0.10 MnT.

Indian Pellet export inquiries decreased from non-Chinese Market-:

China continued to remain the largest importer of Indian pellet in Oct’18 with imports at 0.68 MnT, up 20% M-o-M as against 0.59 MnT in Sept’18. South Korea stood the second largest importer at 0.5 MnT down by 83% against last month at 0.31 MnT. Japan remain nil for Oct’18 against last month at 0.06 MnT.

Country-wise Indian Pellet Export-:

Qty in MnT
Source: SteelMint Stats,Vessel line data
Provisional Data

Port-wise Indian pellet exports -:

Pellet exports from Dhamra port recorded highest in Oct’18 also at 0.26 MnT, down 16% against Sept’18 at 0.32 MnT, followed by Paradip Port at 0.22 MnT (down 48%) and Gangavaram port at 0.10 MnT (Up 88% M-o-M).