 "Iron ore pellet prices dip, exports come to a halt")
Indian iron ore pellet prices have come down Rs 300 a tonne to Rs 7,000-7,100 a tonne after the announcement of a five per cent export duty. Makers are finding it difficult to sell in local markets. Exports have almost come to a halt. Export inquiries have gone down, shipping brokers said. The duty rise at a time of weak global prices and poor local demand was putting pressure on prices, makers said.
“We have not made a deal for 10 days, as there are no major enquiries from the Chinese and other buyers. The last was for $145 a tonne free on board (FOB) in Paradip Port (Odisha), same as January,” said an official of a shipping agent.
Currently, traders are demanding Indian pellets at $140 a tonne at ports. The slump is also due to the closure of key Chinese markets on account of a two-week New Year holiday there, he added.
“There is very little offtake from local sponge iron makers, as they have an ample supply of ore lumps, which makes better quality sponge iron. The prices have come down Rs 300 a tonne from January’s,” said
N D Rao, managing director of BRPL, a subsidiary of UK-based Stemcor.
Prices in Barbil (Odisha) are Rs 7,100 a tonne, down from Rs 7,350 a tonne in the last week of January. At Raipur and Bellary, the rates have not moved for two weeks, sources said.
Makers said India produced 35 million tonnes a year, though it has a capacity of 70 million. However, only one million tonnes have been exported and the rest has been consumed by the domestic market.
"Local steel makers cannot afford to buy pellets, while foreign buyers are a bit cautious after the imposition of duty," said an official of JSPL, which has a pellet unit at Barbil.
“We have not made a deal for 10 days, as there are no major enquiries from the Chinese and other buyers. The last was for $145 a tonne free on board (FOB) in Paradip Port (Odisha), same as January,” said an official of a shipping agent.
Currently, traders are demanding Indian pellets at $140 a tonne at ports. The slump is also due to the closure of key Chinese markets on account of a two-week New Year holiday there, he added.
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Kudremukh Iron Ore Company Limited (KIOCL) tops the list of pellet exporters, followed by Jindal Steel and Power Limited (JSPL). Essar Steel and Brahmani River Pellets Ltd (BRPL) also export limited quantities to Southeast Asian nations.
“There is very little offtake from local sponge iron makers, as they have an ample supply of ore lumps, which makes better quality sponge iron. The prices have come down Rs 300 a tonne from January’s,” said
N D Rao, managing director of BRPL, a subsidiary of UK-based Stemcor.
Prices in Barbil (Odisha) are Rs 7,100 a tonne, down from Rs 7,350 a tonne in the last week of January. At Raipur and Bellary, the rates have not moved for two weeks, sources said.
Makers said India produced 35 million tonnes a year, though it has a capacity of 70 million. However, only one million tonnes have been exported and the rest has been consumed by the domestic market.
"Local steel makers cannot afford to buy pellets, while foreign buyers are a bit cautious after the imposition of duty," said an official of JSPL, which has a pellet unit at Barbil.