India’s FY21 Pellet Production Drops 6% y-o-y

India’s pellet production dropped by around 6% year-on-year (y-o-y) in FY21 to 65.7 million tonnes (mn t) against 70 mn t seen in FY20. However, pellets exports increased by 10.4% in FY21, against 12.5 mn t in FY21. During the same period, pellets imports were reported at 0.34 mn t in FY21.

Domestic consumption of pellets observed a steep fall by 15.8%, from 57.1 mn t in FY20 to 48.1 mn t in FY21. We are assuming that mills are maintaining running stock of pellets throughout the year.