State-owned and export oriented unit, KIOCL has recently imported a vessel of 61,200 MT iron ore fines from Iran. This is the company’s second imported fines shipment from Iran in FY17.
A vessel named “Fratzescos” carrying 61,200 MT Iranian fines is currently at anchorage at Mangalore Port.
As per sources, the Iranian fines offers (for Fe:62/61%) were hovering in the range of USD 49-51/MT CFR around one month before.
It should be noted that the company bought first iron ore import shipment for 68,800 MT in the month of Sept’16 from Iran and exported back high grade pellets to them under buy back tender.
Now, the company is yet to decide whether to export pellet made from this iron ore fines to Iran or to China. This will be the fourth back to back pellet export shipment by the company.
In recent 40th Annual General Meeting, Mr. Malay Chatterjee mentioned that the company has resumed its pellet plant operations since early September with back to back confirmed orders for four shipments. In May’16, the company exported first shipment of 55,000 MT pellets to China. The second shipment of 68,000 MT was exported to Iran in Sept’16, Third exported in 1st week of Oct’16 for 55,000 MT pellets to China.
It is to be noted that Iran is the second largest DRI producer in the world and the largest in the Middle East. The country has large scale of DRI plans because of greater availability of natural gas at cheaper rates. Iran imports pellets because 90% of the total pellets produced by Iran are used for the captive purpose only and the rest is sold domestically.
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