Business Standard reported that Indian steel mill’s dependence on pellets as a raw material is set to increase by at least 13% points in the next two years, due to shortage of high grade iron ore in India.
Data compiled by OreTeam Exim, a Noida based research company, said that 68% of steel production capacity would depend upon pellets as the only source of raw material in the next two years.
The report said that “Currently, 55% of steel is produced through pellets in the country.”
In terms of crude steel production, all captive mills are now setting up their pellet plants and their utilization ratio for pellets is close to 70% on an average. Essar and JSW have nearly 100% utilization capacity of iron ore fines after being converted into pellets. Steel Authority of India Ltd, TATA Steel and RINL are at 75% to 80% SAIL and RINL would, in due course, get their own pellet plants. So would NMDC, for the same reason.
