Ardent Steel Limited (ASL), an Iron Pellet producer with 0.6 million tonne per annum (MnTPA) installed production capacity, based in Keonjhar (Odisha) is a subsidiary company of Godavari Power & Ispat Limited (GPIL).
ASL manufactures Fe 63 Iron Pellet for merchant sales only and has finalized an export deal in the current week.
The total quantity of Iron Pellets is 30,000 tonne with Fe 63.5/63, at a price of US$139/MT FoB Paradeep Port.
ASL has finalized the deal with UK based trader, Liberty Commodities Limited and it is expected that the raw material would be sold to Chinese buyers ultimately.
Shipment of the material will take place during mid-September.
Demand for Indian Iron Pellet is increasing from Chinese steel makers as their conversion cost from Iron ore fines is US$25/MT, which is lower at US$15/MT due to utilization of Iron Pellet.
It has been heard that the UK based steel trader is expected to close export deals for a total quantity of 1.5 lac tonne of Iron Pellet, with Indian Iron Pellet producers, in the near future.
Though, ASL has retained domestic offers at Rs 6,100/MT (ex works Keonjhar), sales is on hold presently.
It is concentrating on exports market as prices are higher by Rs 500-600/MT in comparison to current domestic prices.
The Indian exporter is in talks with international buyers for future deals and is planning to wind up the second one with Iran, by around the beginning or the mid of October.
Overseas buyers are interested to procure Fe 65 Iron Pellet from Indian market and ASL has therefore, decided to procure high grade Iron ore fines with Fe 65 from Iron ore miners located in Barbil (Odisha).
Lower Fe content (63.5/63) in Indian Iron Pellet in comparison to higher grade (Fe 65/66) material available with international producers, is a major concern for Indian manufacturers with respect to the viability of exports in the long run.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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