Under Long Term Trade Agreement (LTA) with Iran, KIOCL, a leading producer and exporter of iron pellet from India, is exporting iron ore pellets to Iran.
A vessel named ‘MV Aries’ carrying 65,500 MT iron pellet, is expected to reach Mangalore Port by next week. KIOCL is currently operating 3.5 MnT pa pellet plant in Mangalore.
This is the 1st shipment under the LTA between KIOCL and Middle East countries, where KIOCL will import iron ore from them, make pellets and export them back.
In addition, KIOCL is also in talks with many Iranian companies since long time, to import iron ore from them, especially fines and export back pellet. This was one of the the part of ‘Make in India’ campaign promoted by Indian government.
As we all know that Iran, which is a potential market to India, has total DRI capacity of 24.3 MnT. Whereas, total requirement of pellets (Fe66%) to nation’s plants is much higher. So, in order to meet the shortfall, Iran is compelled to import pellets. Also, less freight and transition time have attracted Iran to purchase pellets from India.
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