Essar Steel, having a total Iron Pellet making capacity of 20 MnT pa i.e. 12 MnT at Paradip (Odisha) and 8 MnT at Vizag (Andhra Pradesh), is anticipated to ship Pellets from Paradip Port next week.
The company has sold 6,000 MT of BF grade (Fe 63.5%) Pellets to Chennai based Kamachi Steel. A vessel named Jal Vahini is expected to arrive at Paradip Port on 26 June which will be shipped to Chennai Port, according to trade sources.
The deal has been closed at around INR 8,000/MT (loaded into vessel). Kamachi chose to purchase the material from Essar as the price was quite attractive in comparison to procurement cost from Pellet producers in Karnataka.
Buying Pellets from KIOCL (Mangalore) would cost nearly INR 8,850 (delivered) whereas the delivered price would be around INR 9,400-9,600 from MSPL (Bellary) and Xindia Steels (Hospet).
The quantity sold by Essar was part of its leftover stock as the plant is yet to resume production. It has been heard that the buyer was initially looking to procure Pellets from another Odisha based supplier. This ultimately could not happen because of logistical issues in carrying the material from plant to port at sellers end. In addition, the price quoted was higher than Essar’s price.
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