Iron Ore Pellet

India currently does not tax exports of low-grade iron ore, but levies a 30 per cent export duty on high-grade iron ore

Bahrain-based firm Foulath arm Bahrain Steel has collaborated with Essar Group's KSA Green Steel Project for supply of iron ore pellet to Green Steel Arabia (GSA) project. Through this partnership, the Bahrain Steel will deliver four million tonnes of DR-grade pellets per annum (mtpa) to Essar Group, a statement said. The Bahrain Steel is the only (Gulf Cooperation Council) GCC-owned pellet producer and leading supplier of high-quality DR grade pellets to all integrated steel producers in the region, it stated. "Foulath Subsidiary, Bahrain Steel, a leading producer, and global supplier of high-grade iron-ore pellets, has partnered with multinational conglomerate Essar Group in the supply of iron ore pellets to the Green Steel Arabia (GSA) project. The Letter of Intent (LOI) signing ceremony was held on Wednesday, 16th August 2023, in Jubail, Saudi Arabia. Dilip George, Group CEO of Foulath Holding, said in the statement,"Bahrain Steel's LOI with Essar for the supply of 4 million .

"The application of this high export tariff has reduced a merchant exporter's net effective realisation, rendering pellet exports unviable," it said.

According to the clarification, India exported 1,48,76,270 tonnes of these pellets during 2004-2014

Congress alleged that Rs 40,000 crore worth of iron ore pellets were exported in violation of laws by some private players, causing losses to the exchequer, and demanded that names be made public

Pellet makers, sponge iron and pig iron producers allowed to participate

At present, pellets, an intermediate product in the process of steel making, enjoy a duty waiver regardless of their iron content

Demand has shifted for Indian-origin pellets as uncertainty grows about supplies from Vale, the world's top iron ore producer.

Since the product is losing out on price to iron ore and lumps at home, exports offer the only reprieve; a duty hike will blunt India's competitive edge in the global market

NMDC, a few days ago, has taken a price hike of Rs 200/tonne for iron ore lumps and Rs 150/tonne for iron ore fines

The CEC has said allowing pellet export would generate more demand for ore produced in Karnataka

The pellet manufacturers have also demanded that the provision to sell up to 25 per cent of the unused iron ore by captive miners be extended to existing mines as well