Brazil: Pellet exports drop 40% on month in Sept'21 on lower Chinese demand
Brazil’s pellet export shipments were recorded at 1.32 million tonnes (mn t) in Sept’21, as per data compiled by SteelMint. Export volumes declined by 39.7%, ...
Brazil's pellet export shipments were recorded at 1.32 million tonnes (mn t) in Sept'21, as per data compiled by SteelMint. Export volumes declined by 39.7%, m-o-m, compared to 2.19 mn t in Aug.
Exports declined on the back of lower Chinese demand due to steel production cuts.
However, on an annual basis, Brazil's export volumes increased by 9.9% compared to 1.6 mn t over the corresponding period last year (CPLY).
Argentina outstrips China to emerge as top importer
Surprisingly, Argentina emerged as the top importer of Brazilian pellets in Sept'21, outstripping China. Brazil exported 217,065 tonnes (t) of iron ore pellets to Argentina last month, down 46% m-o-m.
South Korea stood as the second largest pellet importer with 190,447 t, down 33.6% m-o-m while Italy was the third largest importer with 170,072 t in Sept.
Other major Brazilian pellet export destinations were Egypt, Malaysia, Japan and the United States.
China slipped to the eighth position with 73,496 t last month, a whopping 90% decline against 750,085 t in Aug. With Chinese government imposing stricter production controls in major steelmaking provinces, imports from the country for pellets and other raw materials (iron ore and coal) have declined.
Pellet exports up 9.7% in Jan-Sept'21
Brazil recorded a total of 13.7 mn t of iron ore pellet export shipments in Jan-Sept'21, an increase of 9.7% y-o-y as compared to 12.48 mn t in CPLY.
Argentina remained the top importer with 2.11 mn t in Jan-Sept'21 followed by the United States and Japan. Brazil exported 1.76 mn t to the US and 1.51 mn t to Japan.
Other major importers were China and Egypt with 1.39 mn t and 1.14 mn t respectively.
Outlook
China's imports from Brazil are likely to remain on the lower side with sustained production cuts. The latter is set to intensify steel output curbs for the remaining months of CY'21 to meet its annual target of steel production less than 2020. This is bound to affect Brazil's pellets exports.
