Paradip port might export 300 per cent more Iron ore in FY14 as compared to FY13 owing to increase in global Pellet demand.
Paradip Port Trust (PPT) may to export 5.5 MnT Iron ore including 1.5 MnT Iron ore Pellets in FY14. This export will be about 300 percent more than the 1.8 MnT from the port as compare to last fiscal. The port’s expectations are high due to improved global demand for Pellets.
“For FY14, we have set a target of 4 MnT Iron ore exports along with 1.5 MnT Iron ore Pellet as market condition is good for the commodity. Pellet exports are just emerging and they will continue to grow in coming years”, said Sudhansu Sekhar Mishra, Chairman, PPT.
According to the data provided by the Indian Port Association, around 2.8 MnT of raw material were exported from the port till October-end, 2013.
During FY13, low Chinese demand amid shortage of Iron ore in Karnataka owing to restrictions imposed by the Government had resulted in reduced export of the material.
Last year, Iron ore was very critical as a result, local steelmakers such as Bhushan Steel and Power Limited had to import the Pellets from Brazil to run its Sambalpur located mill. Although, Odisha’s Iron ore output was about 62 MnT during FY13, but it was not reachable to steel mills outside the state as the government restrained transportation of minerals from Odisha via roads.
Odisha is presently drifting towards export of Pellets other than Iron ore fines as it has larger capacities of pellet production. Although the conversion of Iron ore fines into Pellet is lower in Odisha as compared to production of fines. It has recently increased Pellet production capacity as some firms have shown interest . At present, Jindal Steel and Power, Brahmani River and Pellet, Essar Steel, Bhushan Steel and Power and Adhunik Metaliks are producing pellets with an annual production capacity of 20 MnT altogether.