Weak buying from sponge iron units, coupled by factors such as iron ore availability crisis and expensive ore in e-auctions has impacted Iron ore Pellet market in Southern part of India.
Pellet prices in Karnataka are already at quite low levels, standing in the range of Rs 6,700/MT (Fe% 60) to Rs 7,500/MT (Fe% 62.5), leaving no scope for further drop.
“It is being difficult for us to either operate the plant or take a shut
down as iron ore from NMDC’s e-auctions is quite expensive.
We are maintaining operations at minimum level. It is not feasible to lower prices from current levels and run the plant at losses.
Pellet makers in Bellary are sitting with around 40,000 tons of inventory at the moment.
And, could make 40% of sales only, in the month of February”, senior official of a Pellet making plant at Bellary told SteelMint.
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