According to the customs data maintained with SteelMint, Indian pellet exports have marked a decline of 15% Y-o-Y to 8.19 MnT in CY’18 as against 9.68 MnT in CY’17.
On monthly basis, Indian pellet exports have moved down 38% M-o-M to 0.64 MnT in Dec’18 compared to 1.04 MnT in Nov’18. Buying interest from Chinese mills was witnessed at a lower level in Dec’18 as they were considered purchasing fines and domestic concentrates to make pellets as controls on pelletization plants was relaxed.
Why India Pellet Export volumes declined?
1. Less stringent regulations in China shifted demand for low/medium grade fines -: Amid less strict norms and match up with falling steel margins, Chinese steel mills preferred to purchase fines rather than going for high priced pellets.
2. Increased domestic Pellets Availability increased in China-: Imported pellet buying interest of Chinese mills learned to remain weak later in the fourth quarter of CY’18 owing to increased supply of Chinese domestic pellets, resulting in less pellet export trades from India. Chinese mills are using domestic iron ore concentrate amid less stringent measure imposed on mines and mills.
China’s pellet imports from India fell 24% in CY18- China continues to be the largest importer of Indian pellet in CY’18 with imports of 6.25MnT, down by 24% as against 8.18 MnT in CY’17. South Korea stood the second largest importer at 0.86MnT, followed by UK at 0.19 MnT and Vietnam at 0.17 MnT.
| Country | Dec’18 | Nov’18 | M-o-M | CY’18 | CY’17 | Y-o-Y |
| China | 0.44 | 0.93 | -53% | 6.25 | 8.18 | -24% |
| South Korea | – | 0.11 | -100% | 0.86 | 0.38 | 125% |
| UK | – | – | – | 0.186 | 0.19 | -2% |
| Vietnam | – | – | – | 0.17 | 0.17 | -2% |
| Japan | – | – | – | 0.16 | 0.16 | -2% |
| Other | 0.2 | – | – | 0.57 | 0.6 | -5% |
| Grand Total | 0.64 | 1.04 | -38% | 8.19 | 9.68 | -15% |
Qty in MnT
Source: SteelMint Research
BRPL turned out to be the largest Indian pellet exporter- BRPL stood the largest exporter for the duration of CY’18 with exports at 2.03 MnT (up 14% Y-o-Y), accounting for 25% share in total pellet exports from India. Though the pellet complex has a nameplate capacity of four MnT p.a., it was operating at lower capacity levels in past years, but the new promoters are making efforts to increase its capacity utilization.JSPL recorded pellet exports at 1.61 MnT (down 19% Y-o-Y), followed by KIOCL at 1.51 MnT (up 6% Y-o-Y), Rashmi Metaliks at 0.98 MnT (down 35% Y-o-Y) and Essar Steel at 0.86 MnT (down 37%).
Paradeep port contributed half of the pellet export in CY’18-: Pellet exports from Paradeep port recorded highest in CY’18 at 4.13 MnT, followed by Dhamra port at 1.86 MnT and Mangalore port at 1.51 MnT.
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