Offers for imported Iron ore Pellets to Indian market have dropped marginally in last few days over falling spot iron ore prices in Chinese market.
Current offers for Pellets with Fe% 65 are standing in the range of $170-172/MT CFR Kandla, which was earlier offered at $175/MT CFR Kandla (West coast of India).
Importers of Iron ore Pellet based near Kandla Port in the state of Gujarat (Western India) are reported to get offers from Gulf Industrial Investment Co-operation (GIIC) – Bahrain based, in the range of $170-172/MT CFR India.
Although, not many buyers are keen for importing Pellets, when they have an option of buying it from KIOCL – state owned Pellet manufacturer.
“We are preferring to buy Pellets from KIOCL – based in Mangalore, which is offering its material with Fe% 63 at Rs 7,500-7,600/MT (ex works), landed cost of which comes to Rs 8,700-8,800/MT.
Whereas, landed cost of imported Pellet with Fe% 65 stands around Rs 10,000/MT”, a senior official of SAL Steel Ltd told SteelMint.
He also mentioned that about 30,000 tons of Pellet is being procured on a monthly basis.
Imported material has advantages of high Fe content and low percentage of silica and alumina at 5%,which is 7% for KIOCL's material.
Though, the percentage of phosphorus in imported Pellet is 0.04%, KIOCL's Pellet also contains somewhat similar percentage.
Expensive and low grade Iron ore lumps are not being preferred by steelmakers in the Western part, supply of which is low too.
By the end of April, prices of imported Pellet which have already started falling, looks to come down further.
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