Indian pellet manufacturers and exporters capitalizing on rising pellet demand from international market. Despite lower realization as compared to domestic market, Indian exporters are not hesitant to make deals in large quantities

With limited availability of high grade iron ore lumps, the Iron pellets market has been picking up both in the domestic and international level. While China demand has remained the major driver for this, demands from other region like Europe, Japan, Middle East including Turkey has seen increasing very fast, according to Essar Steel, a leading Indian exporter of the commodity.

“Iron pellets demand from China has been good and increasing, though it is fluctuating every month. The export price of pellet which was about $148 to 150 per tonne in last August has touched $170 per tonne CFR (cost and freight). We are also getting calls from Europe, Middle East and Japan” said A.S.Prasad, Vice President & Head, Pellet plant, Essar Steel.

The company is the largest exporter of iron ore Pellets from Odisha and sells almost all its pellets exported through the Paradip Port to china.

“Though we are getting orders from other regions like Europe, Middle East and Japan, we export a major portion of our Pellet to China, because it is easier to export to china due to lesser the freight cost” ,he said further.

Essar is exporting a major portion of the pellet produced in Odisha to China, while the pellet produced in Vizag is shipped to its Hazira plant. However, after the commissioning of its slurry pipeline the volume of the pellet production will be increased and some portion will be shipped to its Hazira plant.