India Steel Market Watch
October 30: KIOCL is all set to resume exports of pellets to Iran after a gap of almost a decade, an industry sources said.
It will export one million tons per annum. The company has reached an understanding with London-based Anglo American plc for an initial import volume of 500,000 tons of 67.2% Fe grade iron ore from its Brazilian mines, which will be converted into pellets at its plant in Mangaluru on the West Coast.
For exports, the company is in final talks with Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO). It will be exporting around one million tons of high-grade pellets (for use in gas-based DRI plants) per annum.
KIOCL recently received the first shipment of 72,000 tons of iron ore from Brazil. It charged its pellet plant at Mangaluru after successfully testing the iron ore for suitability, sources said.
KIOCL operates a pellet plant with a capacity of 3.5 million ton per annum at Mangaluru in coastal Karnataka. The plant is strategically located and is in close proximity to West Asian and Iranian markets where steel production is growing.
According to industry sources, many other steel mills in India had found Brazilian ore unfit for conversion into pellets. However, KIOCL has expertise in converting iron ore of various grades into pellets. It has capability to use both magnetite and hematite types of iron ore.
The company will, however continue to source iron ore from NMDC’s Chhattisgarh mines for domestic consumption. It recently sold over 100,000 tons of pellets to Essar Steel, sources said.
The company is selling pellets at an estimated $99 (about Rs 6,435) per ton.