INDIA:Profit margins will come down in iron pelletisation in coming years say industry experts

With increasing pellet capacities coming up in India over the next few years, there will be pricing pressure.Increased competition will lead to squeezed profit margins.

“Capacity to touch 100 mtpa in 2017 at the same time sponge capacity will not grow at same rate.Pellets prices fell by Rs 2,000/MT over the span of few months. The same grade which was sold at Rs 10,000/t MT six months back is now sold at Rs 8000/MT. At the same time, iron ore fines have not become cheaper.

This has reduced margins for manufacturers.” said a pellet manufacturer

based in Raipur, Chhattisgarh”

Other offers stand at Rs 7,400-7,500/t (loaded to wagons) Barbil, Odisha said market sources and Rs 7,200/t (Ex-Bellary)