Indian pellet exports gear up in June’15. Essar Steel’s Pellet exports were recorded at 314,400 MT via 6 shipments.
Essar Steel, one of the largest pellet producers with a capacity of 14 MnT pa, is playing a major role in Indian pellet exports. Total pellet export by the company in June’15 is recorded at 314,400 MT. Out of the total, 239,400 MT pellets alone were exported to Iran and 75,000 MT to China.
The company has 8 MnT pa pelletization plant at Vishakhapatnam and 6 MnT pa plant at Paradip port. Essar’s plant location benefits from its proximity to Paradip port (3km away), giving advantages for Coal, other raw material imports and Pellet exports. The plant is designed to operate on slurry pipeline using low grade Iron ore fines. The 253 km long pipeline is to be laid from Dabuna in North Odhisa to Paradip
A cumulative quantity of 166,500 MT DR grade (Fe 66%) was shipped to Iran from Vizag Port at a price of around USD 109-110/MT FOB. A single shipment of 75,000 MT was exported from Paradip to China at around 72-73/MT FOB.
Iran emerges as the largest export destination
Iran has emerged as the largest export destination for Indian pellet exporters. Out of Essar’s six shipments, five were to Iran. Due to cheap availability of gas Iranian sponge makers prefers high grade (66%) pellets.
Recently,state based pellet maker KIOCL, has signed contract with Iranian government for sourcing ore from Iran for manufacture of iron ore pellets in the country under the rupee trade mechanism between the two countries.