KIOCL, having a 3.5 MnT pa Iron Pellet plant in Mangalore (Karnataka) is charging INR 200/MT more to domestic buyers, for sales in January 2014.

The company revises its Pellet prices on a monthly basis and is offering the material at INR 8,400/MT (ex works) for the current month.

Increase in Sea freight and railway freight charges have raised the cost of producing Pellets. Iron ore is still costly and supply continues to be low. Also, KIOCL had received a good response at USD 161.65/MT FoB Mangalore Port for 50,000 MT Pellet export tender in Dec 2013.

In Q3 FY14, KIOCL Pellet prices gained INR 450/MT, owing to expensive Iron ore from NMDC.

Pellet Offers move up further in Bellary

Pellet manufacturers in Bellary (Karnataka) have raised prices for January 2014 because of rise in input cost. Fe 62 Pellet offers are standing in the range of INR 7,650-7,800/MT, Fe 60 material is at INR 7,200/MT and lower grade at INR 6,900/MT. All prices are ex works.

” KIOCL, price setter of Pellet industry in Karnataka, has increased offers by INR 200/MT. Also, prices of Iron ore fines and lumps in Karnataka e-auction are on a continuous rise, ultimately pushing up our cost of making Pellets.

E-auction Iron ore prices might improve further because of good demand and limited availability. Demand in Pellets has picked up slightly and Q4 FY14 looks better than the previous month.

Sponge iron prices have moved up by INR 600/MT in last one week and are unexpected to come down in near term. Therefore, we are offering the material at better prices”, said Bellary based Pellet manufacturers to SteelMint.