KIOCL will increase sales of iron ore pellets to Europe

Indian state-controlled iron ore pellet producer KIOCL has signed initial agreements with international trading companies Glencore and Steel Mont to sell pellets to the European market, including the UK.

KIOCL is looking to increase its overseas sales in the former China markets with an initial agreement earlier this year to sell pellets to Abirates Dhabi, based in Abu Dhabi.

KIOCL is a major producer of low alumina pellets with an alumina content of less than 3%, while its Fe content of 64% is in line with other Indian tier 1 producers such as BRPL and Jindal Steel. The company ships its pellets from the port of New Mangalore in southern India.

India boosted pellet sales to Europe in the 2018-19 fiscal year ending March 31, after an accident at the Brazilian mining company Vale at the Feijao iron ore mine, global pellet supplies were reduced.

Indian pellet sales to the UK are up more than 500% year-on-year to 371,650 tonnes in 2018-19, with first exports to the Netherlands at 54,430 tonnes, Poland at 66,920 tonnes and Turkey at 53,990 tonnes ...

KIOCL produced about 2.24 million tonnes of iron ore pellets in 2018-19. It usually exports about 80% of its production. The company plans to produce 3 million tonnes of pellets in 2019-20.