Indian Pellet importers in Gujarat have preferred to procure Pellets from domestic producers, namely Jindal Saw (Rajasthan) and KIOCL (Karnataka).

Buying from eastern or southern part of India has lessened too. About 1,50,000 MT Pellets is the monthly requirement of Sponge iron plants located in Gujarat.

In Q3 FY14, India imported only 13,000 MT Pellets (at Kandla Port from Russia in Europe), down 83.8% in comparison to 80,300 MT in Q2 FY14.

Pellet importers told SteelMint, “Prices are going up beyond all odds and in spite of better yield, quality and other advantages, it is not viable for us to import Pellets.

Factors such as delivery of the material in lesser time, depreciated Rupee at 62 against USD, feasibility to purchase small quantities as per requirement only and at a much lower landed cost, has resulted in buying of Pellets from domestic market rather than imports.”

Comparison of landed cost of Pellets from Domestic & International Market


Imports: USD 180/MT CFR India*INR 62 against USD
Jindal Saw: Prices delivered to plant
KIOCL: Ex plant prices
Vessel freight: USD 10 for 15,000-20,000 MT; higher freight for 6,000-7,000 MT

The price difference in landed cost from purchasing of domestic Pellets and imported material has widened to INR 2,440-2,940/MT now.