Indian Pellet Plants Running at Minimum Capacities

Pellet plants in India are not immune to measures taken by the government to combat COVID 19. SteelMint spoke to more than 30 top pellet plants in the country to understand their operational status and made the following observations:

Few plants are operational at limited capacities, largely in the state of Odisha, because of proximity to iron ore mines. Plants in other states like Chhattisgarh, West Bengal, Jharkhand, and Karnataka reports complete shutdown.

Indian Pellet production may halt soon: We learnt that, functional plants may also shut down soon owing to low demand, unavailability of labors and piling up inventories.

India produces about 69 MnT per annum, of which 37 MnT is merchant and 32 MnT captive.

Exports likely to be impacted: Pellet exports from India will impact in a big way due to limited truckers, labors and suspended activities at different ports. India exported 13.02 MnT pellets in CY'19, of which 9.48 MnT went to China.

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