According to the customs data maintained with SteelMint, Indian pellet exports have depicted a significant decline of 33% to 0.40 MnT in May’18 against 0.60 MnT in Apr’18. On yearly basis also exports witnessed similar decline of 27% compared to May’17 exports 0.55 MnT then. The total Indian pellet exports for Jan-May’18, witnessed fall of 21% to 2.97 MnT as against same period last year at 3.74 MnT.
Which all factors have resulted in decline in Indian pellet exports ?
1. Falling Chinese demand – The extended steel production cuts in China increased demand for high grade pellets with low alumina content. It has given preferences to iron ore concentrate blending feasible for Chinese steel makers.Iron ore concentrate prices in China remained range bound in May at USD 87-90.5/MT, CFR.
2. Decline in export prices – Indian pellet export prices fell by USD 6/MT throughout the month of May. Towards the beginning of month, Indian pellet export price assessment was around USD 102/MT, FoB which came down to USD 96/MT, FoB towards the month end.
3. Increase in domestic pellet offers – Domestic pellet offers in eastern India moved up sharply in May amid preference over iron ore.
JSPL stood the largest Indian pellet exporter in May’18
JSPL marked the largest pellet exporter for the month of May’18 at 0.15 MnT, accounting 38% of total Indian Pellet exports share, up 51% against Apr’18 exports at 0.10 MnT.
Essar Steel stood the second largest exporter with exports at 0.11 MnT, (stable M-o-M) accounting for 27% share in total pellet exports from India, followed by BRPL at 0.08 MnT (down 48%) and KIOCL at 0.06 MnT ( down 54%).
India’s pellet exports to China fell 29% in May’18
China continues to be the largest importer of Indian pellet in May’18 with imports at 0.26 MnT, down 29% M-o-M as against 0.37 MnT in Apr’18. Vietnam stood the second largest importer at 0.06 MnT (up 6% M-o-M), followed by Malaysia at 0.03 MnT.
Indian pellet export assessment to China is witnessed on lower side due to strict environmental regulations, resulting decline in pellet exports. Owing to which Indian pellet exporters have started to actively look out for non Chinese markets like South Korea, Malaysia and Europe.
Paradeep port accounted for 73% of total pellet exports in May’18
Pellet exports from Paradeep port recorded highest in May’18 at 0.29 MnT, down 21% M-o-M, followed by Mangalore port at 0.06 MnT (down 54% M-o-M) and Dhamra port at 0.05 MnT (down 48%).
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