KIOCL (formerly Kudremukh Iron Ore Company Limited), the state owned and largest producer of Fe 63 Iron Pellet in India, has floated an e-tender for domestic Pellet sales during the month of July.
The e-tender is to be held between 1200 hrs IST on 29 June and 1200 hrs IST on 01 July among its enrolled customers.
Offers are anticipated to either stand at similar levels or witness only a marginal drop by around Rs 100/MT. There is limited room for any upward movement in prices.
Sponge iron prices in Karnataka have gone up by only Rs 400/MT in last one month, which has not supported sales of Pellet in big quantities.
The Mangalore based Pellet producer with an installed capacity of 3.5 MnTPA did not produce any Pellets during this month as it was holding about 1.5 lac tons of unsold quantity.
Market was not so encouraging in the current month, but KIOCL managed to conclude some good deals in the domestic market.
In mid-June, it closed a deal of 40,000 tons of Pellet at Rs 7,450/MT Free on Board (FoB) basis, to steelmaker based in the West Coast of India.
The manufacturer is expecting its total sales volume of Pellets to stand at around 1 lac tons for June and is hopeful of improvement in volumes further.
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