Despite rising export orders, Pellet manufacturers based in Odisha are getting a better value in domestic market and are maintaining a balance between export and domestic sales.
Though margins from domestic sales are higher, export market remains active, as producers are able to liquidate a huge quantity at one go.
Offering a big quantity in domestic market, would result in over supply and falling prices. Also export market is favorable because INR is at 62 against USD and good demand from international buyers. Indian Pellet manufacturers will not hesitate to cut down prices in domestic market if Rupee finds strength against USD.
- 485,800 MT Pellets shipped from Paradip port during Apr-Nov 2013
- 152,700 MT of Pellets shipped from Gangavaram port during Apr-Nov 2013
- Jindal Steel & Power Limited (JSPL) finalized deals for 257,500 MT in Aug-Nov 2013.
Apart from quality factor, international market has preferred to take Indian Pellets because of lesser delivery time of about 20 days in comparison to material being imported from countries such as Brazil, which takes about 1.5 months time.
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