Iron Pellet producers in Bellary (Karnataka) have maintained price levels looking at good demand.
“In past week, manufacturers were not able to meet the requirement of buyers owing to demand (high) and supply (low) mismatch. Hence, they raised their offers slightly to INR 8,050/MT for Fe 62.5.
Though, demand is fine now, but because of falling steel prices in the week before, it has slowed down. At present prices have no room for correction. Fe 60 prices are standing at INR 7,200-7,500/MT”, said manufacturers.
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Iron Pellet Prices in Karnataka |
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Companies |
Grade |
Prices |
|
MSPL |
62.5 |
8,050 |
|
BMM Ispat |
60 |
7,250 |
|
Janki Corp |
60 |
7,200 |
|
Adhunik Metaliks |
60 |
7,100 |
Basic prices in INR/MT
Karnataka based Pellet producers were expecting that they would be allowed to export the material soon, but surprisingly, a 5% duty imposed on export of Pellets has made things worst.
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Pellet Plants in Karnataka |
|
|
Companies |
Capacity (in MnT) |
|
KIOCL |
3.5 |
|
BMM Ispat |
2.4 |
|
MSPL |
1.2 |
|
Xindia Steels |
0.8 |
|
Janki Corp |
0.6 |
|
NMDC |
1.2* |
|
Minera Steel & Power |
0.6* |
|
JSW Steel |
9.2 |
*Pellet Plant to be commissioned in 1st half of FY15
JSW: Captive consumption
Presently, scarcity of Iron ore owing to mining bans in Karnataka & Goa since 2.5 years and sales limited to domestic market, has resulted in no expansion plans. Currently Pellet (merchant) capacity is at around 17.7 MnT and it is expected to touch 19.5 MnT in FY15.
Adhunik Metaliks, having a 1.2 MnT pa Pellet plant in Tatanagar (Jamshedpur) has lowered offers sharply to 7,100 following the trend in Odisha.
“We will concentrate on overseas sales once export market improves; domestic offers are quite low. It is not viable to sell below this level as margins will fall drastically. Our second Pellet plant of 2.1 MnT pa is to be commissioned in Rourkela (Odisha) in Q2 FY16”, said the Tatanagar based Pellet producer.
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