KIOCL, a state-owned Iron Pellet plant having 3.5 MnT pa capacity, lifts prices by 6% i.e. INR 475/MT (USD 8/MT) for June, 2014 in comparison to previous month.
Prices have improved after 3 months owing to increase in production cost and better demand. The company is offering Fe 63.5 Pellets at INR 8,250/MT (USD 139/MT) Ex-Works Mangalore and INR 8,500/MT (USD 143/MT) FoB Mangalore port to domestic buyers. KIOCL is also receiving new inquiries from India’s leading steel producers.
Steel/Sponge iron buyers located in Gujarat purchase Pellets from KIOCL and Jindal Saw (Rajasthan) in big quantities. Cost of procuring Pellets from the former stands at around INR 9,150/MT (landed) for the current month. Demand for KIOCL Pellets is high as Jindal Saw has received enough bookings and sales is on hold presently.
KIOCL procures Iron ore fines from NMDC Kirandul and Bacheli mines located in Bailadila (Chhattisgarh). Rail freight from NMDC-Vizag port (552 km) is INR 1,100/MT (approx) and vessel freight from Vizag port-Mangalore Port is around USD 6-7/MT.
The miner raised fines (Fe 64) prices to INR 3,160/MT (basic) for June, 2014. In May’14, NMDC supplied 33 Iron ore rakes to KIOCL.
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KIOCL Coastal Pellet Movement from Mangalore Port |
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Shipment |
Quantity |
Vessel Name |
|
25 May’14 |
12,500 |
Tuhina |
|
28 May’14 |
45,000 |
Malavika |
Qty in MT
Source: SteelMint Research
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