India: Pellet export shipments drop 12% in Jul'21 on lower Chinese buying

India's pellet export shipments were recorded at 1.19 million tonnes (mn t) in Jul'21, as per data maintained with SteelMint. The shipments fell by 12% m-o-m compared to 1.35 mn t in Jun'21.

The decline in export shipments was largely due to lesser Chinese buying due to quarantine/demurrage concerns. Indian vessels had to undergo an additional 21-28 days of quarantine.

SteelMint's pellet export index (Fe 64%, 3% Al, FoB east coast) fell from $230/tonne (t) assessed towards the middle of June to $221/t assessed towards the middle of Jul'21.

Pellet exports to China down 7% m-o-m

China continued to remain the largest importer of Indian pellets in Jul'21 at 0.92 mn t, down by 7% as against 0.99 mn t in Jun'21. Total pellet inventory at major Chinese ports decreased to 3.9 mn t in end-July, as per data maintained by SteelHome. The inventory was assessed at its lowest level since SteelMint began maintaining data in Jul'20. This gave some room to booking of seaborne pellet cargoes.

Indonesia stood as the second-largest importer at 0.11 mn t followed by Italy at 0.09 mn t.

Shipper-wise exporters in Jul'21

Rashmi Metaliks was the largest pellet exporter in Jul'21 at 0.27 mn t, down against 0.26 mn t in Jun'21. BRPL stood as the second-largest exporter at 0.22 mn t followed by Godavari Power at 0.16 mn t.

Paradip Port accounts for 30% of total exports

In Jul'21, exports from Paradip Port stood at 0.35 mn t with 30% share, down marginally m-o-m. Dhamra Port was second with 0.27 mn t and Gangavaram Port was third at 0.19 mn t.

Outlook

Considering comparatively lower bookings in July, Aug'21 export shipment numbers are likely to witness a fall given the steep decline in global prices on the back of announced Chinese steel production cuts proposed for H2CY'21.