Indian Pellet Exports Fall 20% in Oct'19
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According to data maintained with SteelMint, Indian pellet export volumes in Oct'19 were recorded at 0.89 MnT, down 20% on monthly basis as against 1.11 MnT a month ago. However, on yearly basis, pellet exports increased by 20% as compared to 0.74 MnT in Oct'18.
Why Indian pellet export volumes fell in Oct'19?
1. Chinese mills preference to domestic ore: Chinese demand for imported pellets remained on lower side as amid narrowing steel margins and Chinese mills preference of lumps and domestic pellets over seaborne pellets. Chinese mills depicted week long National holidays from 1st Oct till 7th Oct 2019 resulting in reduced demand for pellets from India.
2. Rise in pellet inventory at Chinese Ports: Iron ore inventory at major Chinese ports increased to 131.65 MnT towards the end of last week as against 125.55 MnT towards Sep'19 end. Pellet inventory at Chinese ports recorded at 5.25 MnT in beginning of Sept'19 which increased to 5.75 MnT towards month end as per SteelHome.
Indian pellet exports to China fell 26% in Oct'19
China continued to remain the largest importer of Indian pellets for Oct'19 at 0.59 MnT, down 26% as compared to 0.79 MnT in the previous month.
Indian pellet exports to non-Chinese markets fell slightly to 0.30 MnT as against 0.32 MnT in Sep'19. Indian pellet exports to South Korea and Oman recorded at 0.11 MnT each followed by Djibouti 0.08 MnT.
BRPL exported 1.67 MnT pellets during Apr-Oct'19
BRPL marked the largest Indian pellet exporter for the month of Oct'19 at 0.251 MnT, slightly down 7% compared to 0.27 MnT in Sep'19. The company recorded pellet exports of 1.67 MnT during Apr-Oct'19 and emerged as largest Indian pellet exporter.
JSPL remained second-largest exports at 0.25 MnT (up 25%), followed by KIOCL at 0.11 MnT (down 4%).
| Company | Oct'19 | Sep'19 |
| BRPL | 0.25 | 0.27 |
| JSPL | 0.25 | 0.20 |
| KIOCL | 0.11 | 0.11 |
| Shri Jagannath Seel Power | 0.06 | 0.05 |
| Rashmi Metaliks | 0.06 | 0.15 |
| Ironide Minerals | 0.06 | 0.05 |
| Others | 0.11 | 0.27 |
| Grand Total | 0.89 | 1.11 |
Qty in MnT, Provisional data,
Source: SteelMint Research, Customs
Paradip port accounted for the largest export share for the month:
Pellet exports from Paradip port recorded highest in Oct'19 at 0.39 MnT almost stable on monthly basis, followed by Dharma Port at 0.16 MnT (down 65% M-o-M ), and Gopalpur at 0.12 MnT.
