Incorporated on April 2, 1976, Kudremukh Iron Ore Company Ltd. (KIOCL), under the Ministry of Steel is a Government of India enterprise. In conversation with Steel 360, Malay Chatterjee, Chairman-cum-Managing Director, KIOCL said that the Iron Pellet prices would be under pressure in eastern part of the country and the inability of the Pellet plants to export puts a big question mark on their survival as Pellet production capacity in the country is continuously on the rise.
Q. With increase in capacity (supply) of Iron Pellet in India, do you see shortage of Iron ore in future? In which direction would Pellet prices as well as Iron ore prices move in the next two quarters?
Iron ore shortage is experienced at present due to stoppage of mining activities in Karnataka & Goa. Though Hon’ble Supreme Court has granted permission to restart mining activities in category A & B mines, it may take a while for mining activities to start as these mines are required to implement R&R plans. Hence, Iron ore prices are likely to remain high in Karnataka. As the Pellet production capacity within the country is increasing especially in the eastern sector, Pellet prices are likely to come under pressure. However, prices may either remain stable or move upwards in the southern and western market.
Q. KIOCL is concentrating on domestic sales rather than exports. Where does KIOCL see itself as a supplier in terms of acceptability, quality and delivery for its material?
Presently, KIOCL is concentrating on domestic sales as the exports are unviable considering the levy of DBC by railways. KIOCL Pellet has established itself in terms of acceptability, quality and delivery not only in domestic market but also in overseas market.
(The full text of the interview is available in the June issue of the magazine.)