KIOCL, the Ministry of Steel owned Iron Pellet producer located in Mangalore (Karnataka), revises domestic prices of its material on a monthly basis through an e-tender.
For sales of Pellet through road and sea during October, the tender was held between 14:00 hrs on September 28 to 14:00 hrs on September 30.
The manufacturer is offering Pellet in the range of INR 7,700-7,800/MT (ex works) to domestic buyers, for the month of October.
Q2 FY 14 proved to be better for KIOCL
Q2 FY 14 proved to be better for the company in terms of domestic Pellet sales, in comparison to Q1 FY 14.
Imports of Pellet to the North-West region of India dropped drastically last month. Till the 25th of September, 17,800 tonnes was imported in comparison to 37,500 tonnes imported in the month of August.
Also, supply of Pellets from the state of Odisha to the Southern and North-western region was low because of favorable export market and limited quantity available for domestic sales.
KIOCL has an installed capacity of 3.5 MnT pa for producing Pellet and is sourcing Iron ore fines from NMDC's Bailadila mines based in the state of Chhattisgarh.
The Pellet manufacturer is exploring the possibilities of sourcing Iron ore fines from alternative sources i.e. the state of Odisha on long term supply basis.
It is vigorously working out on ways to resume exports. Distance based charge (DBC), which is applicable for transportation of Iron ore fines through railways, for manufacturing of Pellet and their subsequent export, is the major issue being faced by the company.
KIOCL's Vessel expected at Mangalore Port
On October 03, a vessel named MV Agria is expected to arrive at Mangalore Port, which is to carry 40,000 tonnes of Pellet for JSW Ispat Steel's integrated steel plant in Dolvi (Maharashtra).
On October 04, another vessel named MV All Cargo Arathi is expected to arrive at Mangalore Port, for carrying 6,000 tonnes of Pellet. The material will be procured by a Kandla based buyer.
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