Pellets

India’s Iron Pellet installed capacity was 57.4 MnT pa in FY14 and is estimated to reach about 87 MnT pa in FY15, that’s a 24.6 MnT Iron pellet capacity expansion in pipeline.

The country’s Iron Pellet capacity has observed an exceptional expansion since 2008 menacing from superior quality Iron ore Lumps dearth. Following enforcement of Iron ore mining ban in Karnataka and Goa, Indian Iron ore production slumped enormously from 219 MnT in FY10 to 136 MnT in FY14.

Most of the Pellet plant capacities are commissioned in Chhattisgarh and Odisha for captive consumption, however additional expansion will add up to the merchant market.

Upcoming Future Capacity

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Essar Steel will be India’s largest Pellet producing Company

After subsequent achievement of having 6 MnT pa Pellet plant in Paradip, Essar Steel will become country’s leading Pellet making company with 20 MnT pa installed capacity, although with no captive Iron ore mine.

Jindal Steel & Power (JSPL) will be the 3rd largest Pellet producing company in India after JSW Steel.

Odisha will continue to be the major Pellet producing state for the reason that enough Iron ore is available. And, access to port will facilitate export sale.

Outcome of escalating Pellet Production

Growing Pellet capacity will ascend merchant availability, which in due course might squeeze prices. Consequently, DRI plants will have a preference to make most of Pellets to a certain extent. Blast Furnace operators will possibly avail themselves of economical Pellets.

New Plant may not Come in FY16

In dialogue with trade sources & equipment suppliers, Steel 360 figured that not many Pellet plants may come up in FY16 owing to higher capacity against the present demand.

Company

Pellet capacity (MnT)

Jayaswal Neco Industries

1.2

Rashi Steel & Power

0.4

Ispat Industries

3.5

NMDC

1.2

Mineral Steel & Power

0.6

Pro Minerals

0.9

Essar Steel

6

Tata Steel

3

Jindal Steel & Power

4

KJS Ahluwalia

1.2

Monet Ispat

2

Rashmi Group

0.6