Predictions of several industry experts on increasing imports of Iron ore and Pellets to India seems to be proving wrong, owing to weak rupee and cheaper Pellets available in domestic market.
India imported around 3 million tonnes of Iron ore and Pellet in 2012-2013 and according to experts it was to touch 5 million tonnes in 2013-2014. But with increasing availability of merchant Pellet in Indian market and depreciated Rupee against US dollar, imports of Iron ore or Pellets might not boost. Recently Indian Rupee hit an all time low of 69 levels making imports non viable for the steel makers. More over with production coming from BRPL's 4 million tonne Odisha plant and Godawari's Chattisgarh 1.2 million tonnes (additional) pellet capacity, supply in domestic market has certainly improved.
Indian Imports of Iron Ore and Pellets
According to a steel manufacturer based in Western India, one of the highest importing regions of India, currently steel mills are more comfortable securing Pellets from Indian manufacturers as prices are comparatively less and delivery time is also reasonable.
He also mentioned that, imported Pellets would cost around INR 10,000-11,000/MT; however buying Pellets from local market will cost INR 9,000/MT delivered to plant site.
Recently SAL steel, one of the steel manufacturers based in Gujarat has booked one cargo from KIOCL, a state owned Pellet manufacturer, he further added.
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