Jindal Saw Ltd, which recently started operating its Pellet plant in the state of Rajasthan, turns out to be a preferred source of raw material for Gujarat based steel mills.

Jindal Saw Ltd, a flagship company of O.P. Jindal group, having 1.2 MnT pa Iron Pellet plant, Iron ore mines and beneficiation plant in Bhilwara (Rajasthan), is offering Iron Pellets of grade 63% at INR 8,800-8,900/MT (delivered Gujarat, excluding CST and Excise) to Gujarat based buyers, for the current month.

The company is procuring Fe 35 Iron ore fines from its captive mines (magnetite) in Bhilwara (Rajasthan), which is further beneficiated and transformed into Fe 63 DR grade Pellets. It has targeted to produce 100,000 MT Pellets in January.

In Dec 2013, Jindal Saw offered Pellets at INR 8,600/MT (delivered). Prices have been raised by INR 300/MT, looking at better demand in Q4 FY14. Since June, the company is offering Pellets to northwest region.

The Pellet plant, which was scheduled to be commissioned in the beginning of Q3 FY14, started operations some time  in the month of June 2013. About 70,000-90,000 MT Pellets is being produced per month for sales to Sponge iron plants in northwest region.