Indian Pellet Exports Increase in Q2 FY'19 on Strong Overseas Demand

According to the customs data maintained with SteelMint, Indian pellet exports have registered rise of 7% to 1.96 MnT in Q2 FY'19 against 1.83 MnT in Q1 FY'19.

Why Indian pellet exports surged in Q2 FY'19?

--Supply constraints at LKAB in Aug'18: Pellet supply had reduced in global market over Swedish miner - LKAB (EU largest iron ore producer and 2nd largest producer in seaborne pellet market) declaring a force majeure. The fire broke out in Norwegian railways had resulted in temporary supply cut by the miner.

--Preference for Indian Pellets: Korean steel mills had increased their dependence on Indian mills for pellet demand on urgent need owing to some breakdown at their plant.

--Chinese need of High grade ore/pellets: China's strict governmental laws and winter heating cuts led to rising demand for high grade ore and resulted in increased dependence on Indian pellets. The Chinese Golden week holidays ( 1st Oct to 7th Oct) and winter production cuts also led to increased imports of Indian pellets.

Indian pellet exports for H1 FY'19 have dropped 8% to 3.79 MnT against 4.10 MnT in H1 FY'18.

Indian pellet exports up two folds in Sep'18 -

Indian pellet exports have registered an increase to more than twice M-o-M to 0.95 MnT in Sep'18 as against 0.45 MnT in Aug'18. On yearly basis, pellet export increased 17% against 0.82 MnT in Sep'17.

Pellet exports to South Korea up by almost three folds Q-o-Q

Indian pellet exports to South Korea witnessed sharp rise in Q2 FY19 at 0.32 MnT, up almost three folds against 0.11 MnT in Q1 FY19. Amidst limited availability of material, overseas buyers such as Japan and South Korea depicted sharp uptick in Indian imports for the second quarter FY 19. Japan depicted 20% rise in quarterly imports to 0.06 MnT against 0.05 MnT in Q1 FY19.

China continued to be the largest importer of Indian pellet for Q2 FY'19 at 1.38 MnT, up 7% Q-o-Q as against 1.29 MnT in Q1 FY'19. Indian pellets have been exported to Mexico for the first time in Q2 FY19. BRPL exported pellets to Mexico in August.

On monthly basis, China imports recorded increase of 48% in Sep'18 to 0.59 MnT as against 0.4 MnT in Aug'18. South Korea recorded imports at 0.26 MnT followed by Japan at 0.06 MnT.

Country-Wise Indian Pellet Export

Qty in MnT
Source: SteelMint Stats, Custom
Provisional Data

BRPL pellet exports up 16% Q-o-Q

BRPL stood the largest exporter of pellets for the quarter at 0.55 MnT, up 16% as against 0.47 MnT Q1 FY19. JSPL stood second largest exporter at 0.44 MnT (up 8% Q-o-Q). The company has raised pellet production by around 25-30% and is planning to raise capacity utilization to 100%.

Rashmi Metaliks and Jindal SAW witnessed significant rise in quarterly exports to 0.32 MnT (up by more than five folds) and 0.11 MnT (up by more than two folds) respectively.

Rashmi Metaliks recorded largest export from India in Sep'18 at 0.27 MnT, up by almost five folds on monthly basis as compared to 0.06 MnT a month before.

Company-Wise Indian Pellet Export

Qty in MnT
Source: SteelMint Stats, Custom
Provisional Data