KIOCL, a state controlled Iron Pellet maker located in Mangalore (Karnataka), has raised offers for the 2nd time in Q3 FY14. It is charging INR 8,200 (ex-works) for one tonne of Pellet, up by INR 200/MT M-o-M.
According to sources, “Though, offers have moved up but plants are still running at a loss because cost of production has increased; any further addition would not be accepted by consumers”.
One of the Pellet makers in Karnataka said, “Pellet prices are likely to move up in the current month and demand has started showing signs of improvement as some projects (low cost housing) are likely to start, post elections”.
Indian Pellet Prices witness an upward trend
One of the Pellet exporters in Barbil (Odisha) is likely to offer Pellets at USD 175/MT CFR, for January shipment as offers in international market are on the higher side and demand from Chinese buyers is good. About 3-4 export deals are expected to be finalized in the current month.
Import
One of the Pellet importers based in Gandhidham (Gujarat) has imported Pellets from Several sal (Ukraine), at around USD 175/CFR Kandla Port.
“Though, the landed cost of imported Pellets is higher than domestic offers, better quality i.e. low phosphorus and Silica content, has forced us to procure Pellets from overseas markets”, said the importer.
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