KIOCL (formerly Kudremukh Iron Ore Company Limited), state controlled Iron Pellet producer based at Mangalore (Karnataka), has opened domestic Pellet prices for August, at Rs 7,300/MT (ex works Mangalore).
Demand in Pellets has been quite low in the last one month, due to which offers did not witness any upward movement.
Also, any further correction in prices in order to get rid of stock might result in an only option to close down operations due to high cost of production, coupled with low buying interest and rising inventory levels.
A Pellet manufacturer located in the eastern coast of India is offering Pellets at Rs 6,300/MT (Basic), to buyers based in the Western coast of India i.e. Gandhidham (Gujarat), landed cost of which comes to Rs 7,500/MT.
Pellet users have not been procuring the material in large quantities from Odisha.
Until and unless finished steel prices start picking up, things don't look to improve.
Imports of Pellet to India (the western region) have come down drastically in the past one month owing to the sliding Indian currency (at 60 levels) and low supply from overseas suppliers.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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