India: Pellet export shipments hit 7-month high in Jan'22 on rising global prices

India registered a whopping 213% rise in pellet export shipments at 1.19 million tonnes (mnt) in Jan'22 compared to 0.38 mnt in Dec'21, SteelMint's vessel line-up data shows. Notably, India's pellet exports hit a 7-month high in Jan'22.

China leading importer

China continued to be the largest importer of pellet from India at 0.99 mnt in Jan'22. Export volumes to China witnessed a sharp increase of 253% on month as against 0.28 mnt in Dec'21. Indonesia occupied the second position among the top importers' list in the month under review with 0.16 mnt followed by Malaysia.

Shipper wise exporters in Jan'22

Rashmi Metaliks was the largest pellet exporter in Jan'22 at 0.34 mnt, up when compared to 0.07 mnt in Dec'21. Southern India-based KIOCL stood as the second-largest exporter at 0.28 mnt followed by BRPL and AM/NS India with 0.16 mnt, each.

Hike in pellet export prices drive exports

• A sharp hike in pellet export prices boosted export bookings. SteelMint's assessment of India's pellet exports (6-20mm, Fe 64%) prices rose to $137/t FOB in end-Dec'21 from $126/t FOB levels in mid-Nov'21. Prices rose further to $146/t FOB by mid-Jan'22.
  
  
• Recovery in global iron ore prices supported Indian pellet export offers. The Fe 62% benchmark iron ore fines index rose to $120-125/t CFR China towards end-Dec'21 from $90/t CFR China seen in mid-Nov.
  
  
• Seaborne iron ore prices rose on a positive demand outlook ahead of the Lunar New Year holidays and Winter Olympics, coupled with easing monetary policy and rise in futures.
  
  
• Traders actively took position for cargoes in anticipation of demand recovery post-the CNY holidays.