KIOCL, operating a 3.5 MnT pa Iron Pellet plant in Mangalore (Karnataka) has floated a tender for domestic sale in June, 2014.
The state controlled company is price setter of Karnataka Pellet industry. E-tender for sale of Pellets through sea & road during Jun’14 will be held between 12:00 hrs on 29 May, 2014 and 12:00 hrs on 30 May, 2014 (Indian Time), among empanelled customers; companies interested to participate will have to get them registered.
KIOCL receives inquiries from East & Central India
New inquiries from Sponge iron plants based in eastern & central part of India owing to Pellets shortfall in the eastern region, may strengthen KIOCL Pellet prices next month. In addition, Indian Pellet prices have strengthened by about INR 2,000/MT in a month.
Escalation in Pellet supply and non viability in export since Jan 2014, restricted any surge in KIOCL Pellet prices. Although, export market remains inactive, domestic requirement has improved.
KIOCL procures Iron ore Fines from NMDC Bailadila mines in Chhattisgarh; costing of Pellets may well increase as the latter might offer expensive Iron ore because of suspension of mining operations in Odisha coupled with higher demand from Chhattisgarh Sponge iron plants and long term customers.
|
KIOCL Coastal Pellet Export from Mangalore Port |
|
|
Month |
Qty in MT |
|
Dec’13 |
71,000 |
|
Jan’14 |
183,900 |
|
Feb’14 |
50,000 |
|
Mar’14 |
83,000 |
|
Apr’14 |
Nil |
|
May’14 |
107,000 |
Source:SteelMint Research
JSW Steel, Essar Steel, Bhushan Steel and Steel/Sponge iron producers located in Ganhidham, Goa & Karnataka are takers of KIOCL Pellets.
On 25 Mar, 2014, KIOCL signed MoU with RINL & NMDC for setting up of 8 MnT pa filtration plant, 6 MnT pa pelletisation steel plant and 13 MnT pa slurry pipeline in Vizag (Andhra Pradesh).
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