Indian pellet export shipments hit all time high in May'20
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Indian pellet export shipments in the second month of the fiscal FY'21 was recorded at 2.07 MnT, hitting an all time high, as per data maintained with SteelMint since Apr'14. On monthly basis exports are up 69% as against 1.22 MnT in Apr'20, according to data maintained with SteelMint. On yearly basis too, pellet exports picked up 67% in May'20 as against 1.24 MnT in Apr'19.
Factors which favoured Indian pellet exports for the month:
1. Limited domestic offtake :
With steel mills running on low capacity utilization due to lock-down in Apr'20 and early May'20, pellet offtake in the domestic market remained slow. This is turn pushed up Indian pellet makers towards exports.
2. Rise in Chinese Demand :
The month witnessed a rise in Chinese demand of raw material followed by resumption in construction activities. In absence of material from other major miners, Chinese import of Indian pellets remained on higher side for the month.
3. High price realization:
SteelMint assessment for Fe 64% grade pellets with 3% Al increased during the month by to USD 111-113/MT, CFR China against being around USD 100/MT, CFR China towards the beginning of the month. The rise in price was followed by rising spot iron ore prices which crossed over USD 100/MT during the month amid strong Chinese demand.
Indian pellet exports to China up 80% in May'20
China remained the largest importer of Indian pellet for the month of May'20 at 1.91 MnT, up 80% against 1.06 MnT in Apr'20. Oman stood second largest importer at 0.11 MnT followed by Malaysia at 0.05 MnT.
AM/NS India remained the largest pellet exporter
AM/NS India continued to be the largest pellet exporter for the month at 0.45 MnT, up 25% M-o-M, followed by JSPL at 0.41 MnT (up 63% M-o-M) and BRPL at 0.28 MnT.
| Company | May'20 | Apr'20 |
| AM/NS India | 0.45 | 0.36 |
| JSPL | 0.41 | 0.25 |
| BRPL | 0.28 | 0.29 |
| Rashmi Metaliks | 0.28 | 0.16 |
| KIOCL | 0.21 | 0.06 |
| Godavari Power | 0.11 | - |
| Others | 0.33 | 0.11 |
| Grand Total | 2.07 | 1.22 |
Qty in MnT, Provisional data,
Source: SteelMint Research, Customs
Paradip port stood largest exporting port in May'20:
Pellet exports from Paradip port recorded highest for the month at 0.83 MnT up 20% against 0.70 MnT in Apr'20, followed by Dhamra Port at 0.55 MnT (up two folds M-o-M), and Vizag at 0.22 MnT.
