Indian Pellet Export Volumes Surge 59% Y-o-Y in CY19

According to data maintained with SteelMint, Indian pellet export volumes in CY'19 recorded at 13.01 MnT, up 59% on yearly basis as against 8.19 MnT in CY'18.
Indian pellet exports in Dec'19 depicted 11% hike to 1.30 MnT compared to 1.17 MnT in Nov'19.

Why Indian pellet export volumes picked up in CY'19?

Chinese production curbs: The production curbs in China amid rising pollution concerns have resulted in increased pellet imports from India. The production curb in Tangshan were extended by two months from Aug'19 to Oct'19. Towards early Oct'19 mills in Tangshan were ordered to reduce sintering, pelletizing and blast furnace operations from Oct. 10 until Oct. 31. Also, increased steel margins favored preference of pellets over low-grade ore.

Demand from non-Chinese markets: The global pellet supply crises (Vale disaster & absence of Samarco) have led to non-Chinese market demand for Indian pellets. Pellet exports from India picked up for the year to non-Chinese markets such as Oman, Turkey, other European Country (like Greece, Netherland) , and South Africa as against nil in CY18. BRPL reported first ever pellet exports shipment to Turkey made in May'19.

India pellet makers were actively exploring the non-Chinese market to export pellets . Demands were observed from Europe and MENA regions following vale mishap. They are looking to decrease the dependency on the China market.

Indian pellet exports to China increased 58% in CY'19
China marked the largest importer of Indian pellets in CY'19 at 9.93 MnT, contributing 76% of total export share for the year. Chinese imports for the year increased 58% as compared to 6.30 MnT in CY18. Oman stood second-largest importer at 0.77 MnT. Exports to South Korea, Turkey and Malaysia recorded at 0.65 MnT, 0.43 MnT, and 0.31 MnT respectively.
Exports to South Africa witnessed at 0.17 MnT against being nil in CY18.

BRPL turn largest exporter during CY'19
BRPL marked the largest Indian pellet exporter for the year CY19 at 3.03 MnT, up 49% compared to 2.03 MnT in CY'18. JSPL stood second largest exporter at 2.24 MnT (up 39% Y-o-Y) followed by KIOCL at 2.06 MnT (up 41%).

Qty in MnT, Provisional data,
Source: SteelMint Research, Customs

Paradip port accounted 4.75 MnT pellet export in CY19:
Pellet exports from Paradip port recorded highest in CY'19 at 4.75 MnT up 13% on yearly basis, followed by Dharma Port at 3.82 MnT (up two folds Y-o-Y ), and Mangalore at 2.06 MnT (up 41%).