Indian Pellet Exports Down 42% in Feb'20 on Lower Chinese Buying

According to data maintained with SteelMint, Indian pellet export volumes in Feb'20 recorded at 0.60 MnT, down 42% on monthly basis as against 1.05 MnT in Jan'20.On yearly basis, exports dropped 26% compared to 0.81 MnT in Feb'19.

Why Indian pellet export volumes dropped in Feb'20?
Coronavirus epidemic reduced Chinese Demand: The cornovirus outbreak in China just after the Lunar New Year holidays towards Jan'20 end led to falling inquires of Indian pellets by Chinese mills.

Rise in pellet inventory: Indian pellet exports have reduced for the month amid piled up inventory at Chinese ports. As per data compiled by SteelHome consultancy, pellet inventory at major Chinese ports increased to 4.3 MnT as of Feb'20 end as against 4.1 MnT assessed towards end of Jan'20.

China stood the sole importer of Indian pellet for the month
China stood the largest and only importer of Indian pellet for Feb'20 at 0.60 MnT, down 33% for the month against 0.90 MnT in Jan'20. Indian pellet exports to non-Chinese markets dropped to nil for the month.

Rashmi Metaliks pellet exports up 47% in Feb'20
Rashmi Metaliks marked the largest Indian pellet exporter for the month at 0.16 MnT, up 47% compared to 0.11 MnT in Jan'20. JSPL stood second largest exporter at 0.13 MnT (down 19% M-o-M) followed by BRPL at 0.11 MnT (down 63% on monthly basis).

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

Paradip port pellet exports fell 36% in Feb'20:
Pellet exports from Paradip port recorded highest in Feb'20 at 0.22 MnT down 36% on monthly basis, followed by Dharma Port at 0.19 MnT (down 44% M-o-M), and Mangalore at 0.09 MnT (down 49%).

Outlook-: Global iron ore prices of high-grade ore are expected to volatile following coronavirus outbreak and piling up steel inventories with the Chinese mills.