Posted on 10 Mar 2021
Indian pellet export shipments to China rise 28% in Feb'21 on active buying
Indian pellet export shipments were recorded at 0.79 mn t in Feb’21, as per data maintained with SteelMint.China continued to remain the largest importer of Indian pellets in Feb’21 at 0.68 mn t, up 29% m-o-m. Brazil was the second largest importer at 0.06 mn t followed by Bahrain at 0.05 mn t.
Factors driving Indian pellet exports-
- Subdued sales in the domestic market –Domestic pellet sales remained subdued in India as iron ore lump is preferred. Monthly average pellet domestic prices in Barbil decreased to INR 11,200/t (loaded to wagons) in Feb’21 compared to INR 11,850/t in Jan’21.
- Falling Chinese port stocks push demand for seaborne cargoes –Pellet inventory at major Chinese ports fell to 6 mn t by end Feb’21 against 6.2 mn t stocks seen towards the beginning of Jan’21, as per data compiled by SteelHome Consultancy.
- Production curbs boost demand for high grade ore-Tangshan Government in North China’s Hebei has suspended the operations of the local re-rollers since Jan’31 to improve the air quality. Later, during third week of Feb’21, additional restrictions were put due to poor air quality forecast. Sintering activities were limited which resulted in increased demand for high grade raw material including pellets.
Kalinga Metaliks recorded highest pellet exports in Feb’21
Kalinga Metaliks Limited was the largest pellet exporter in Feb’21 at 0.18 mn t, up 28% against 0.14 mn t in Jan’20. BRPL stood second largest exporter at 0.16 mn t followed by Bagadiya Brothers at 0.13 mn t.
Qty in t, Provisional data,
Source: SteelMint Research, Customs
Dhamra port accounted for 55% of the total export
In Feb’21, exports from Dhamra port stood at 0.44 mn t, against 0.36 mn t in Jan’20. Paradip port stood second at 0.21 mn t and Mangalore port was third at 0.11 mn t.
Source:SteelMint
