KIOCL, a state-owned and 100% export oriented unit (EoU), is to export 55,000 MT Iron Pellets to China by the end of this month, according to trade participants.
Surprisingly, when Indian steelmakers are struggling to source Iron ore from domestic market, KIOCL has gone for exports. Experts justify that since the company is 100% export oriented unit, they have certain obligations to fulfill.
The deal has heard to be finalized at around USD 115/MT FoB (INR 6,900/MT) basis; including 5% customs duty.
According to sources, KIOCL has received bids above prevailing market price and thus decided to go ahead with the deal. Whereas, it is offering Fe 63.5 BF grade Pellets to domestic buyers at INR 7,750/MT (basic) by road.
Current prices in Indian market are hovering in the range of INR 7,200-8,400/MT (USD 120-140/MT) for 64/63% Fe Pellets on ex-works basis.
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