India: RINL to Source Iron Ore Pellets from Chhattisgarh

Rashtriya Ispat Nigam Limited (RINL) also known as Vizag Steel is one of India's leading integrated steel producer. The company achieved growth 10% Y-o-Y growth in its crude steel output in FY16 and recorded production of 3.64 MnT.

The steel maker procures iron ore from NMDC (Chhattisgarh) and pellets from merchant market. It also procured pellets in NMDC's 1st e-auction conducted on 15 Nov'16 from Donimalai (Karnataka).

The steel maker had floated a tender on 23 Dec'16 for purchase of 240,000 MT iron ore pellets from the global and indigenous sources. The material delivery was scheduled in three different parts. Apart from southern India based pellet makers, few Chhattisgarh based pellet manufacturing units had also participated in the tender.

As per market sources report to SteelMint, Chhattisgarh based pellet maker - Godawari Power & Ispat is likely to supply nearly 60,000 MT pellets to the steel maker and the delivery for the material is expected to be done by 20 Jul'17.

Godawari Power & Ispat is central India's leading pellet maker with installed capacity of 1.8 MnT pa.

Central India pellet buying remains weak amid less trades -

Presently Raipur pellet (Fe 63%) prices are heard in the range of INR 4,600-4,700/MT (basic). Pellet prices have come under pressure over declining P-DRI prices and limited pellet trades.

Raipur pellet prices have fallen by INR 400/MT M-o-M.

P-DRI (80 FeM) prices have dropped by INR 2,000/MT M-o-M and yesterday price was at INR 14,350/MT (ex-works).