KIOCL (formerly Kudremukh Iron Ore Company Limited), the state controlled Iron Pellet producer located in Mangalore (Karnataka), has opened its September Iron Pellet prices on the higher side.
Offers have been raised by Rs 550/MT and are standing at Rs 7,850/MT for sales of Pellets through road and at Rs 7,950/MT for sales through Sea, which was quoted at Rs 7,300/MT in the month of August.
(Basic prices)
KIOCL revises its Pellet prices on a monthly basis and is currently operating a 3.5 MnTPA Pellet (Fe 63) plant.
The e-tender for sale of Pellets through Road during September 2013 was held between 14:00 hrs IST on Aug 30 and 14:00 hrs IST on Aug 31.
And, for sales through sea, it was held between 10:00 hrs on Aug 28 and 10:00 hrs on Aug 29.
The rise in cost of producing Pellets has pushed KIOCL's domestic Pellet offers on the higher side.
Domestic demand in Pellets has slightly improved as shortage of Scrap in domestic market (sliding Rupee against US dollar hit imports) has accounted for hike in Sponge iron prices.
Weakening Rupee, which is at 65 level against US dollar presently, has increased the cost of importing coal.
Sea freight charges have also gone up by US$ 1.5/MT and higher oil prices (furnace) have also added to the input cost.
Iron ore production is low due to monsoons and increase in moisture content, which has ultimately impacted the production of Pellets.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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