Jindal Steel & Power Limited (JSPL), one of the largest Iron Pellet manufacturer based in Barbil (Odisha) with 4.5 million tonnes per annum (MnTPA) installed production capacity, had concluded an export deal recently.
In the first week of August, JSPL finalized a 50,000 tonnes Iron Pellet export deal at USD138-140/MT FOB Paradeep Port.
In quest to know more, SteelMint spoke to Liberty Commodities Limited – an international steel trader having its headquarters in London, and found out that it is taker of Jindal's raw material.
Of the total quantity, JSPL has already started moving some quantity of Pellets by Road (through Trucks).
It was a good deal as JSPL was able to liquidate a big quantity of the material and made high realizations out of depreciating Rupee against US dollar.
Considering USD = INR 60, the price stands at around Rs 8,200/MT.
Whereas, the manufacturer were offering Pellets at Rs 6,100/MT (loaded) to domestic buyers, before it decided to hold sales in the third week of July.
JSPL's domestic Pellet sales continues to be on hold and might not be resumed anytime soon, unless demand improves and prices move up.
It is concentrating on export orders and moving the material to its plant in Oman and in Raigarh (Chhattisgarh) for captive consumption.
The company's total Pellet making capacity is expected to touch 15 MnTPA by 2016.
By September this year, JSPL is to commission a 4 MnTPA Pellet plant at Barbil (Odisha) at a total investment of Rs 750 crore.
And, another 7 MnTPA Pellet plant is to be commissioned in Angul (Odisha) by 2016 at an investment of 1200 crore.
From its Barbil based Pellet plant, it is presently supplying Pellets to its Raigarh manufacturing unit and offering it for merchant sales as well.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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