State-owned and export oriented unit, KIOCL has imported around 68,800 MT iron ore fines from Iran. This is the first imported fine shipment from Iran in FY17. This shipment belongs to the recently closed buy-back tender by the company on 30 Jul’16.
A vessel named “Panamax Queen” delivered the high-grade ore to Mangalore Port on 12 Sept’16.
As per sources, the Iranian fines offers (for Fe:62/61%) were hovering in the range of USD 52-53/MT CFR around one month before.
It is to be noted that in Jul’16 ending, the company floated a tender for purchase of 65,000 MT high-grade iron ore concentrate/ pellet feed and buy-back of pellets manufactured by them out of the above-imported material through participation in the tender. The tender was closed on 30 Jul’16.
As per tender document, the material supplied by the respective party should contain Fe 67% minimum and the pellet supplied back to Iran manufactured by KIOCL will contain Fe 65.5% minimum.
It is to be noted that Iran is the second largest DRI producer in the world and the largest in the Middle East, has a large scale of DRI plans because of greater availability of natural gas at cheaper rates. Iran imports pellets because 90% of the total pellets produced by Iran are used for the captive purpose only and the rest is sold domestically.
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