Indian Pellet export market, which picked up in Q1 FY14, backed by rising Chinese spot Iron ore prices, weak INR and growing Indian Pellet capacities, marked least exports in Q1 FY15. In contrast to Q4 FY14, exports declined by 58% in Q1 FY15.
Indian government imposed 5% export duty on Pellets w.e.f 27 Jan, 2014 to facilitate ample raw material availability to domestic steel mills since Iron ore production has deteriorated by 38% in last 4 years.
Following duty imposition, domestic Pellet prices turned down significantly February, 2014 onward. Chinese spot Iron ore prices had taken a downward trend since January, 2014 and lost USD 37/MT (down 28%); it touched 3 years low in June, 2014.
Pellet manufacturers have preferred domestic sale because of higher realizations and healthier demand as Iron ore supply crisis persist.
Volatile Indian currency, inconsistent demand from China, distance based charge by Indian railways to transport Iron ore for Pellet making, which are meant for exports and Chinese spot Iron ore price trend, still a challenge for Indian Pellet exporter.
Pellet Export in Q1 FY15 down by 58% against Q4 FY14
|
Exporters |
Port |
Q1 FY15 |
Q4 FY14 |
|
Brahmani River Pellets |
Paradip |
102,000 |
109,000 |
|
TUF Metallurgical |
Paradip |
35,000 |
– |
|
Netincon Marketing |
Haldia |
21,000 |
– |
|
Jindal Steel & Power |
Gangavaram |
– |
142,000 |
|
Ardent Steel |
Paradip |
– |
53,300 |
|
KIOCL |
Mangalore |
– |
52,800 |
|
Essar Steel |
Paradip |
– |
21,340 |
|
Total |
|
158,000 |
378,440 |
Qty in MT
Source: SteelMint Research
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