Importers of Iron ore Pellet located in Gandhidham (Gujarat) – the north western part of the country are being offered Pellet at similar price levels, standing in the range of $170-175/CFR ($=54 levels) India as compared to last week's offers.
A senior official of one of the company based in Gandhidham which imports Pellet told SteelMint, “Most of the material is coming from Ukraine presently.
About one lac tons of Pellet is being imported in Gandhidham on a monthly basis.
We prefer to import Pellet rather than sourcing it from the Indian domestic market on factors such as:
- Low phosphorus content (0.2%)
- Low silicon content (2.5%)
- High Fe content (64%)
- Freight cost of carrying Pellet from Karnataka is Rs 2,200, landed costs stands at around Rs 9,550/MT and above
- Pellets offered from Karnataka are of low grade i.e. with Fe% 58 and 59, which is not very suitable for use
- From Odisha, it is not feasible to get the material through trucks. And through railways, we have to take risks as there are chances of the material being carried away.
Indian Pellet makers based in Barbil (Odisha) are in the present day, making offers (ex works prices) at Rs 7,450/MT (Fe% 63) and those in Bellary (Karnataka) at Rs 6,800/MT (Fe% 59).
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