Essar Steel, which has 14 MnT pa installed capacity of Iron Pellet at Paradip (6 MnT) and Vizag (8 MnT) port is exploring buyers in Southern India for its Pellets as confirmed by trade sources.
Trade sources also mention that with recent imposition of export duty on Pellets by Indian Government and falling spot prices in Chinese market have made Pellet exports nonviable for Essar Steel. Hence forth company is looking to sell its cargo in Southern market.
Currently, a parcel of 40,000 MT Iron pellets has been shipped from Vizag port to Chennai port. Cargo is heard to be bought by Kamachi Steel. However, sources were unaware of the deal price but said that deal was closed below INR 7,500/MT FOB Vizag port.
According to the reports, despite weak rupee and fair global steel prices, Essar Steel is unable to execute a USD 6 billion steel products export deal as the domestic general insurers are reluctant to provide cover to the deal.
Leave a Reply