“Availability of low cost iron ore on account of improved supply, as few mines have opened in Odisha, has resulted in weak buying of Iron ore Pellet.
Though, sponge iron market improved in the beginning of last week, prices and demand of sponge iron has met with some stability again.
Therefore, we are offering Pellet at slightly lower prices i.e. Rs 7,500/MT (ex works)”, a senior official at Arya Iron and Steel Ltd shared with SteelMint.
He also foresees a further drop in prices by around Rs 300/MT in the beginning of March.
“Pellet prices has to come down subject to more of iron ore supply, as a couple of mines named R P Sao and KJS Ahluwalia are yet to resume mining operations.
Users of Pellet might opt to wait for low cost iron ore and not prefer to buy expensive Pellet”, added the official.
Brahmani River Pellets Limited (BRPL) – a Stemcor project in the state of Odisha is anticipated to start its commercial high grade Pellet production of 4.5 million ton per annum (mtpa) by the end of March.
Through beneficiation of low grade iron ore fines (beneficiation plant at Barbil connected by a 220 km underground slurry pipeline to Pellet plant at Jajpur), availability of Pellet will increase both for domestic consumers as well as importers based in China and other countries.
According to SteelMint reports, Government of Odisha has also allowed miners to liquidate the excess iron ore stocked, which is about 100 million tons that had been raised up to the 2nd of October 2012.
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