In FY’18 Indian pellet, Industry observed an optimistic year in terms of production, capacity utilization, and exports. According to data compiled by SteelMint, Indian pellet capacity utilization stood at 72% for the last fiscal year. Indian pellet capacity was learned to be around 83.32MnT p.a. and pellet production stood around 59.6 MnT as per our study.
Eastern India accounted for 50% share in Indian pellet production-: According to SteelMint study, Eastern India accounted for 50% share in total India’s pellet production. States like Odisha, Jharkhand and West Bengal has 39.52 Mnt pellet making capacity and produced 29.71 MnT which is around 75% of Capacity utilization. Odisha is the biggest pellet producer in India with 27.1MnT capacity and produced 17.66MnT which is 65% of total share of eastern India. Major plants in this area are Essar Steel (Paradip), Jindal Steel & Power, Tata Steel, BRPL etc.
–Southern India has pellet making capacity 27.5 MnT and produced 18.56 MnT pellets in FY18. Karnataka contributed maximum with 19.5 MnT installed capacity and produced 12.46MnT in FY’18 which is 64% utilization against installed capacity. Major plants include- JSW Steel, KIOCL etc.
–Chhattisgarh is the only pellet producing states in Central India. It has installed capacity of 9.3 MnT and produced 5.8 MnT which is 62% capacity utilization. Major pellet plants like Godawari Power & Ispat, Sarda Energy & Minerals, Bajrang Ispat are located here.
Pellet Production from the regions has performed well in all the regions owing to increased demand from the domestic market and conducive external environment helped to the Indian pellet makers to export.
Indian pellet industry outlook for FY19:
Indian pellet production is likely to improve in FY19 owing to following reasons:
– Jharsuguda based Shyam Metaliks & Energy is expanding capacity from 0.6 to 1.2 MnT p.a.
– XIndia Steel is expected to resume pellet production.
– BRPL has raised pellet production by 25-30%. It eyes 85% capacity utilization in FY19.
Leave a Reply