Southern India based pellet maker- X India Steels Ltd is to resume production after facing closure of almost 2.5 years. The company has pellet making capacity of 0.8MnT p.a. As per the market participant report to SteelMint, the company will resume production from Jul’18.
They are already started procuring iron ore from Karnataka e-auction. In the recent auction conducted on 14 Jun’18, they procured 12,000 MT fines (Fe 64%- 65.6%) from the private miner.
Once the company starts offering pellets in the merchant market, the prices of the pellet in Bellary (Karnataka) might be come down on increased availability.
Southern India (Bellary) based pellet makers decreased prices at INR100/MT to INR 6,600-6,700/MT. P-DRI price assessment in Southern India was INR 19, 500/MT down by INR100/MT today (18th Jun’18) against INR 19,600/MT last week assessment.
India has an installed pellet capacity of 81.5 MnT p.a. Southern India accounts for 34% share in the capacity of about 27.5MnT p.a.
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