Brazil: Pellets exports rebound 85% m-o-m in Apr'22

Brazil's pellets exports were recorded at 1.85 million tonnes (mnt) in April 2022, rebounding by 85% m-o-m as against 1 mnt in March 2022, according to vessel line-up data maintained with SteelMint. However, iron ore supply in Q1 weakened, particularly in Brazil due to wetter-than-usual monsoon season, which was further impacted by the global crisis.

On a yearly basis, pellet exports increased by 26% y-o-y as compared to 1.47 mnt in CPLY. In addition, cumulative pellet export volumes were recorded at 5.71 mnt in January-April 2022, also up by 8% y-o-y.

Country-wise importers

Egypt was the largest importer of pellets from Brazil at 0.17 mnt in April, stable as against the previous month.

Argentina occupied the second position among the top importers' list at 0.16 mnt followed by Japan at 0.15 mnt. Brazil pellet exports to Japan and Italy have increased in April versus March.

Outlook

According to sources, as supply from Brazil has recovered recently, weak steel margins might pressure the spread in the coming days.