Southern India based pellet maker- XIndia Ltd with 0.8 MnT pa capacity, has started pellet production a week ago as per the report received to SteelMint from its sources. As per the sources reported to SteelMint, the company has started production with 70-80% capacity utilization currently.
The company is producing Fe 63% Pellet from its plant situated in Bellary region. It is expected that they will start offering pellets in the merchant market in a week’s time.
In mid of June, SteelMint reported X India Steels Ltd is to resume production after facing closure of almost 2.5 years. The company is seen procuring iron ore from last two months in Karnataka e-auctions.
Bellary pellet offers increased amid a hike in sponge prices – Southern India (Bellary) based pellet makers have increased prices to INR 6,600-6,800/MT against the assessment made in the beginning of last week which was INR 6,350-6,450/MT. As per the sources, the demand is steady in the market. Pellet offers in southern India have increased because of the increasing P-DRI prices which have increased significantly by INR 700/MT W-o-W to 20,000/MT against the last assessment INR 19,300/MT a week ago.
India has an installed pellet capacity of 83.32 MnT p.a. Southern India accounts for 34% share in the capacity at 27.5MnT p.a.
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