Rourkela (Odisha) based sponge iron manufacturer-Shri Mahavir Ferro Alloys has recently commenced pellet production at their 0.6 MnT pa plant.
Shri Mahavir Ferro Alloys-Rourkela (Odisha) based sponge iron manufacturer which operates a 100*3 TPD sponge iron unit has commenced pellet production. Apart from its sponge iron unit the company also operates a steel melting shop for billet manufacturing and a power supply unit.
The company operates a pellet plant of capacity 0.6 MnT pa in Rourkela. Currently the company is utilizing manufactured pellets both for captive and merchant purpose.
For merchant buyers, current offers for (Fe 63.5+/- 0.5%) pellets are INR 3,300/MT (basic). Landed cost of pellets to Raipur will stand at around INR 4,200-4,300/MT and to Raigarh based units will remain at INR 4,000/MT. Currently in Raipur pellet offers are hovering in the range of INR 4,100-4,200/MT (basic).
In talk with SteelMint, company officials shared that currently we are offering pellets via road only. The railway siding of the company is under pipeline which is expected to start by Jul’16. After which the company would start giving offers on loaded to wagons basis.
The officials looked optimistic for pellet demand in Apr’16 and are anticipating uptrend in prices backed by buying interest.
Odisha’s pellet capacity reaches 30.1 MnT
Odisha is hub of pellet plants in India and occupies a share of around 35% in India’s pellet capacity. Odisha’s pellet capacity has increased to 30.1 MnT pa which was earlier at 21.6 MnT pa in FY14.
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