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Indian Pellet Exports at 3.5 MnT in FY17 ( Apr-Oct’16)

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Pellets

BigMint Bureau

424 Reads

7 Nov 2016, 12:41 IST

Indian Pellet Exports at 3.5 MnT in FY17 ( Apr-Oct’16)

Indian pellet exports have gained momentum starting FY17 and were registered at 3.5 MnT during Apr-Oct’16 in FY17 against 0.24 MnT in the same time period last year.

Prime reason behind the increase in pellet exports was increasing Chinese demand for high-grade pellets and rising spot pellet premium which gave opportunities to Indian pellet exporters to export material at higher export prices.

In the month of Oct’16,pellet exports was recorded at 747,755 MT against 802,370 MT in Sept’16. Although, the pellet exports dropped down by 7% M-o-M, but on the Y-o-Y basis the pellet exports registered a remarkable growth as in the month of Oct’15, it remained nil.

It is to be noted that Indian east coast pellet exporters are actively exporting high-grade pellets to China. They majorly export from Paradip, Dhamra and Haldia Port. But, the rising vessel lines up at Paradip Port has created Port congestion and thereby Indian pellets exports are facing difficulty in exporting pellets from these ports.

Rising demand for pellets from Chinese buyers: Due to the halt in Brazilian Samarco’s operations which supplies around 10-11 MnT pellets every year to China, there is a wide gap created in demand and supply of pellets in China. India, being a neighboring country is trying to fill this gap and create more business for Indian pellet exporters.

Spot pellet premium reaches at USD 32.5/MT amid rising coking coal prices: Spot pellet premium in the past two weeks has again moved up by USD 2.5/MT and currently witnessed at USD 32.5/MT.

The rise in pellet premium was majorly due to higher coking coal prices which are hovering at USD 274/MT, FoB Australia. Higher coking coal prices have compelled Chinese buyers to look for other high-grade alternatives like high-grade iron ore/pellets in order to reduce coking coal usage. This has pushed spot premium up.

Indian pellet exports in Oct’16

Date	Shipper	Vessel Name	Quantity	Prices	Port	Last Port
1 Oct’16	KIOCL	Lunita	55,000	N/A	Mangalore	China
3 Oct’16	Essar Steel	Dimi	52,500	N/A	Paradip	China
6 Oct’16	Rashmi Metaliks	Eolus	17,500	77	Haldia	China
9 Oct’16	JSPL	Besiktas M	55,000	N/A	Dhamra	Oman
10 Oct’16	Rashmi Metaliks	Glory Marugame	22,000	78.1	Haldia	China
12 Oct’16	JSPL	Lietta	42,825	78.6	Paradip	China
12 Oct[‘16	BRPL	Columba	54,870	78.1	Paradip	China
16 Oct'16	Essar Steel	V Arctic Tern	49,600	81.4	Paradip	China
16 Oct'16	Bagadiya Brothers	New Excellence	73,000	N/A	Dhamra	China
16 Oct'16	Rashmi Metaliks	Eolus	26,190	72.6	Dhamra	China
18 Oct'16	JSPL	Athena	50,000	78.9	Dhamra	China
21Oct'16	BRPL	Top Grace	59,270	78.4	Paradip	China
24 Oct'16	Rashmi Metaliks	Blessing Sw	18,000	N/A	Haldia	Japan
25 Oct'16	Arya Iron & Steel	Bedford Castle	47,000	N/A	Dhamra	China
25 Oct'16	KIOCL	Poscidon Sw	55,000	N/A	Mangalore	China
28 Oct'16	JSPL	Bulk Paraiso	50,000	78.9	Paradip	China
31 Oct'16	Rashmi Metaliks	Aktea R	20,000	N/A	Haldia	China
Total			747,755