Steel/Sponge iron plants in the northwest region source Iron Pellets from KIOCL and Jindal Saw in large quantities. They have not shown some buying interest from east coast because of high landed cost.
Presently, KIOCL (Mangalore) is the only source and costs (landed) INR 9,100/MT (USD 154/MT) to Gujarat buyers. Jindal Saw (Bilwara, Rajasthan) Pellet bookings are on hold as the company has already received adequate orders. It operates a 1.2 MnT pa Pellet plant and is the most preferred source of raw materials for Gujarat based plants.
For June delivery, KIOCL Pellet (Fe 63.5) prices have improved by 6% i.e. INR 475/MT (USD 8/MT) to INR 8,250/MT (USD 139/MT) ex-works Mangalore and INR 8,500/MT (USD 143/MT) FoB Mangalore port. 
Iron Pellet exporters, located in the East coast of India are offering 66,000 MT Pellets on ex-plot/FoB/LIW basis, from Paradip Port. Exporters had transferred the material from plant to Port previously, so as to meet with immediate shipment, when export market was quiet favorable.
Indian government enforced 5% duty on exports w.e.f 27 Jan, 2014 and Chinese spot Iron ore prices took a downward movement April 2014 onward, hence exports aren’t viable. To add on, INR appreciated to 58/59 against USD.
One of the exporters having 40,000 MT Pellets stocked at port is offering at INR 8,700/MT FoB Paradip port/LIW to Gujarat. The landed cost to Gujarat stands at nearly INR 9,950/MT (USD 168/MT), which is costlier than import as well as KIOCL prices.
While, another exporter having 10,000 MT stock is offering the material at INR 8,750/MT (ex-plant). Buyers will have to bear additional INR 1,250-1,550/MT as freight cost to procure the material on ex-plot and FoB Paradip port basis. Thus, landed cost at INR 10,000-10,300/MT (USD 169-175/MT) is quiet high.
With no option left, Pellet exporters might have to wait until and unless export market revives as Steel/Sponge iron plants in Odisha, West Bengal, Jharkhand and Maharashtra would prefer to procure Pellets from plants directly.
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