PMAI was set up recently to champion the cause of pellet makers whose interests were hurt after the government levied a 5 per cent duty on exports of the steel-making raw material on January 27 this year.
Pellet is a value-added product made from iron ore fines having less iron content and mainly used for production of sponge iron in gas-based steel-making units.
Chatterjee, who is also the Chairman and Managing Director of state-run pellet maker KIOCL, formerly known as Kudremukh Iron Ore Company, was unanimously elected as the inaugural President of the association in April this year.
Sources said Chatterjee quit because his position as the head of PMAI was clashing with his role as the Chairman of an PSU. Also, PMAI's recent outburst demanding roll back of the export duty was not going down well with him, they added.
India has over 75 million tonnes pellet making capacity. Almost all the major steel makers are expansing capacities and an estimated Rs 35,000 crore investment is underway.