Indian Pellet Exports Up 33% in Nov’19

According to data maintained with SteelMint, Indian pellet export volumes in Nov’19 recorded at 1.17 MnT, up 33% on a monthly basis as against 0.89 MnT a month ago. However, on yearly basis, pellet exports increased by 13% as compared to 1.04 MnT in Nov’18.

Why Indian pellet export volumes picked up in Nov’19?

1. Fall in Chinese port inventories:
The fall in Chinese inventories favored Indian exports. As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 129. 4 MnT towards Nov’19 end as against 131.65 MnT assessed towards end of Oct’19. Pellet inventory at major ports recorded at 6.4 MnT towards the last week of Nov’19 as against 7.2 MnT towards the end of Oct’19.

2. Chinese demand for Indian Pellets:
The rising production curbs due to winter heating have resulted in increased preference for high-grade ore in the Chinese market. Also, increased steel margins favored preference of pellets over low-grade ore.

Indian pellet exports to China up 52% in Nov’19
China continued to remain the largest importer of Indian pellets for Nov’19 at 0.89 MnT, up 52% as compared to 0.59 MnT in the previous month. Oman stood second-largest importer at 0.09 MnT. Exports to Vietnam, Japan, Sri Lanka and Malaysia recorded at 0.05 MnT, 0.04 MnT, 0.03 MnT and 0.02 MnT respectively against being nil a month ago.

BRPL exported 30% of total Indian pellet export
BRPL marked the largest Indian pellet exporter for the month of Nov’19 at 0.36 MnT, up 42% compared to 0.25 MnT in Oct’19. KIOCL stood second largest exporter at 0.28 MnT followed by Rashmi Metaliks at 0.17 MnT and JSPL at 0.11 MnT.

Qty in MnT, Provisional data,
Source: SteelMint Research, Customs

Paradip port accounted for the largest export share for the month:
Pellet exports from Paradip port recorded highest in Nov’19 at 0.40 MnT almost stable on monthly basis, followed by Dharma Port at 0.32 MnT (upto two folds M-o-M ), and Mangalore at 0.28 MnT.