Pellets

Pellets are the backbone of India’s iron and steel industry. These pellets play an integral role in steel production as they substitute for calibrating or sintering lumps in the blast furnace stage.

India has been a significant market for pellets as the country produces, consumes, and exports these iron ore substitutes to a major market share. Most of the country’s iron ore pellets are exported to Bangladesh, China, and Indonesia, contributing to a major portion of the industry. 

Regarding value, India is the leading exporter of pellets, with an average consumption of around 3.5 million tonnes yearly. These stats, however, continue to change as pellet exports rose to a new two-year high of 4.36 million tonnes (mnt) in March 2023, marking a 15% m-o-m against its previous months. 

The country has been able to sharply increase its exports of pellets by nearly 60% y-o-y, compared to its 2.75 million tonnes of exports last year. Global export indicators further suggest that India could push its pellet exports by 50%, adding more potential to its exports and market share.