The beginning of Q2 FY 14 has proved to be good for Iron Pellet manufacturers based in the state of Odisha, in terms of the export market.
After Jindal Steel & Power Limited (JSPL), a Pellet manufacturer named Essar Steel Limited located in the east coast of India, has also concluded an export deal.
It has been heard that the deal was finalized in the current week only and with China.
The total quantity is 50,000 tonnes of Fe 62.5/63 Pellets in Vessel name is MV. NORD GLORY EXP, which is expected to reach Paradeep Port on August 12.
Essar Steel is also offering Fe 62.5/63 Pellets at Rs 6,300-6500/MT (ex works Paradeep) to domestic buyers.
In July last week, Kamachi Group unloaded 27,000 tonnes of Pellets at Chennai Port Trust, which was shipped by Essar Steel from Paradeep Port.
Sponge iron units based in the Southern part of India and in the state of Gujarat have in the recent past, preferred to buy Pellets from Odisha based manufacturers as landed cost is lower in comparison to Pellets prices in the state of Karnataka (Rs 6,900/MT ex works for Fe 63).
Fe 63 Pellets are being offered in the range of Rs 6,100-6,700/MT ex works from Odisha based manufacturers.
In Q4 FY 14, Essar Steel Ltd is to commission another 6 MnTPA Pellet plant at Paradeep (Odisha).
It will become Nation's single largest Pellet producer in terms of installed production capacity, despite the fact that it does not own a single Iron ore mine.
It's current Pellet making capacity stands at 14 MnTPA i.e. 8 MnTPA Pellet plant at Vizag (Andhra Pradesh) and 6 MnTPA at Paradeep (Odisha).
For more details, contact
Seema Goenka
(seema@steelmint.com)
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