Indian Pellet Exports Fall 20% in Feb’19 Amid Weak Chinese Demand

According to the customs data maintained with SteelMint, Indian pellet exports have marked the drop of 20% to 0.81 MnT in Feb’19 as against 1.02 MnT in Jan’19.

For FY19 (Apr-Feb) the total pellet exports recorded at 8.05 MnT as against 8.21 MnT for same duration FY18 (Apr-Feb). The exports for the year witnessed on the lower side due to less stringent regulations in China resulting in shift to lower and medium grade fines.

Why did Indian pellet export volumes fall in Feb’19?

1. Chinese steel mills prefer low-grade iron ore-: Amid shrinking steel margins, Chinese mills prefer low-grade iron ore and concentrate rather than going for high-grade ore & pellets. They also preferred port stocks rather than seaborne cargo.

2. Weaker Chinese demand amid domestic (China) pellet availability -: Due to less environment restriction in China, limited pellet inquiries came for Indian pellets from Chinese mills. Market sentiments have turned dull after Chinese New year holidays.

China’s pellet import from India fell 6% in Feb’19

China continues to be the largest importer of Indian pellet in Feb’19 with imports of 0.66 MnT, down by 6% as against 0.70 MnT in Jan’19. South Korea stood the second largest importer at 0.15 MnT up almost three-times as compared to 0.06 MnT in Jan’19.

Qty in MT
Source: SteelMint Research

BRPL turns out to be the largest pellet exporter in Feb’19

BRPL stood the largest exporter for Feb’19 with exports at 0.23 MnT down 12% as against 0.26 MnT in Jan’19. JSPL stood second highest pellet exports at 0.21 MnT (down 30% M-o-M), followed by KIOCL at 0.17 MnT and Bagadiya Brothers at 0.05 MnT.

Port-wise Indian pellet exports in Feb’19

Pellet exports from Paradip port recorded at 0.34 MnT down 45% as against 0.62 MnT in Jan’19, followed by Dhamra port at 0.16 MnT and Mangalore port at 0.17 MnT.