Indian Pellet Export Market Slows as Domestic Demand Surges

Indian Pellet Export Market Slows as Domestic Demand Surges

India’s pellet export market has turned quiet, with suppliers preferring the domestic route due to stronger margins and steady demand at home.

Weaker Export Offers, Better Domestic Realizations

The pellet export index (Fe 63%, 3–3.5% Al) dropped by $1/tonne week-on-week, settling at $97/t FOB east coast as of August 20, 2025. Despite this decline, suppliers are reluctant to close export deals, as domestic prices are delivering higher returns.

Iron Ore Shortages Drive Costs Up

Tight availability of iron ore has pushed up pellet production costs, further discouraging exports. Indian producers are currently focused on catering to domestic steelmakers, where demand remains consistent and profit margins are more attractive.

Export Activity Remains Limited

Market participants report minimal export activity as overseas buyers are unwilling to match Indian offers. This pricing gap has resulted in a slowdown in trade, with no confirmed pellet export deals reported recently.

Outlook

Unless international prices pick up or domestic supply pressures ease, Indian pellet exports are likely to remain muted. For now, robust local demand continues to anchor supplier priorities within India.