Monday, July 18,
Uncertainty hovering over the supply of good quality iron ore lumps from both Karnataka & Orissa is prompting steel makers to use iron ore pellets.
According to Mr K. Ranganath, Chairman and Managing Director of KIOCL, the global pellet production capacity is expected to touch 500 million tonnes by this year end as against the 380 million tonnes capacity during 2009.
India, the third biggest exporter of iron ore, is also increasing the pellet production capacity continuously to utilise low grade iron ore and to meet the increased demand.
The pellet capacity in India is expected to touch 50 million tonnes by the end of 2012. Most of the plants are coming up in Karnataka and Orissa where low grade fines are available abundantly with good water supply and logistics
“The cost of production in India is higher due to high energy costs, due to which Indian pellet manufactures are in a disadvantageous position. However removal of export duty on pellets by considering it as a value added product has provided some relief to pellet producers,” pointed out Mr Ranganath.
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