Indian pellet export shipments decline 30% in Aug'20 on higher domestic realizations

Indian pellet export shipments fell by around 30% m-o-m in Aug'20 at 1.18 mn t as against 1.67 mn t in July'20.

Indian pellet makers are mostly focusing on exploring the domestic market as its looks more lucrative than the export realization amid high domestic prices and tight availability. SteelMint domestic pellet index PELLEX increased from INR 6,350/t , DAP Raipur in Jul'20 to INR 7,800/t DAP Raipur in Aug'20. Hike in iron ore prices, resulted in hike in pellet offers as well.

Also, easing Brazilian supplies post resumption of Vale's Itabira Complex in Brazil and Teluk Rubiah terminal in Malaysia led to declining Indian exports since the past two months.

On a yearly basis too, Indian pellet export shipments declined by 17% compared with 1.42 mn t in Aug'19.

Indian pellet exports to China down 39% in Aug'20

China remained the largest importer of Indian pellets in Aug'20 at 0.94 mn t, down 39% from 1.53 mn t in July'20. Poland stood second largest at 0.08 mn t followed by Indonesia at 0.06 mn t.

Rashmi Metaliks stood largest exporter for the month

Rashmi Metaliks was the largest pellet exporter for the month at 0.19 mn t , down 42% m-o-m, followed by BRPL at about 0.17 mn t (down 57% m-o-m) and KIOCL at 0.16 mn t.

Indian pellet exports: Aug'20 v/s July'20

Qty in mn t, Provisional data,
Source: SteelMint Research, Customs

Dhamra port accounted for 36% of total monthly export

In Aug'20, Dhamra port was the largest exporter at 0.42 mn t, down by 3% compared with 0.43 mn t a month ago. Paradip port was the second largest exporting port at 0.33 mn t followed by Gangavaram at 0.23 mn t and Mangalore at 0.16 mn t.