Price difference between iron ore fines and iron ore lumps is unrealistically high in Indian market say industry experts. This difference will come down when we have more pellet plants coming up in India.
“In global scenario price difference between iron ore lumps and fines is $30-40 per tonne, but in India iron ore lumps is expensive by 3 times than iron ore fines. Current prices of lumps are Rs 7,500/t and fines is Rs 2,500/t.
Reason being that we do not have many pellet plants installed here. But scenario is changing fast as more and more pellet plants coming up. We see an additional capacity of 7-8 million tonnes pellets in 2013 which will be available for merchant sale.
This will sharply increase the demand of iron ore fines and reduce dependency on iron ore lumps. We see price difference between iron ore lumps and fines should be Rs 2,500-3,000/t in next year.” said Mr BL Agarwal, CMD Godawari Power and Ispat Limited, Chattisgarh, which is one of the largest steel producer in Central India having pellet plant in Odisha as well.
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