An Odisha based Iron Pellet manufacturer with 0.9 MnT pa installed capacity (0.3 MnT pa plant in Jharsuguda & 0.6 MnT pa plant in Raigarh), has finalized a 30,000 MT Pellet (Fe 63) deal on ex-plant basis.
The deal was finalized at INR 7,100/MT (ex works) with a Kolkata (West Bengal) based trader last week. This is the third deal between both the parties. Freight charges stand at INR 1,300 and shipment of the material will take place in the current month, from Haldia Port.
The company is operating its plant with outsourced Iron ore. It is using Pellets for merchant sales and for its 0.3 MnT pa Sponge iron plant in Raigarh (Chhattisgarh).
Pellet deals finalized by the Odisha based Manufacturer
| Month | Qty (MT) | Grade | Prices (INR/MT) | Freight (in INR) | Port | Shipment | Trader |
| Dec | 30,000 | 63 | 7,100 | 1,650 | Haldia | Dec | Kolkata (W.B) |
| Sep | 30,000 | 63 | 7,500 | 1,300 | Paradip | Sep | Kolkata (W.B) |
| Aug | 30,000 | 63 | 7,100 | 1,650 | Paradip | Oct | Kolkata (W.B) |
Freight: From Plant to Port; charges might go up slightly if Iron ore supply improves. Vessel freight = USD 20
Chinese Pellet offers increase to USD 172/MT CFR. Another Keonjhar based Pellet exporter mentioned that overseas buyers are interested to procure about 60,000 MT, low freight at USD 10-11 would be an advantage. Whereas, 35,000-40,000 MT would cost USD 15-16 as freight charges.
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