Indian pellet manufacturers are undergoing a tough time on factors like high power costs,falling steel prices and low acceptability of iron pellet over iron ore.
India supposedly to double its pellet production capacity i next 4-5 years.Things will get tougher for the manufacturers,report industry experts.
Current scenario is also not very encouraging, when iron ore prices are cheaper than pellet prices and lower value of pellet sponge over sponge iron makes pellet prices under pressure. Current offers from manufacturers based in Odisha are around Rs 7,600-7,800/t (Loaded to wagons) for 63% Fe pellet, where as same grade of crushed iron ore available at around Rs 7,300/t (Loaded, Barbil-Odisha).
Market anticipates pellet prices to come down further by Rs 400-500/t in coming weeks.
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