India’s KIOCL restarts Mangalore iron ore pellet plant

India's state-controlled KIOCL restarted its 3.5mn t/yr iron ore pellet plant in Mangalore on 24 November following the withdrawal of export duties on pellets last week.

The producer had suspended its Mangalore operations on 7 June after the government imposed a 45pc duty on iron ore pellet exports on 22 May to safeguard domestic supplies and help curb inflation.

The firm had briefly restarted its operations on 12 August but had shut operations soon after on 23 August.

The Indian government removed export duties on steel products and iron ore on 19 November, saying it was necessary in the public interest to do so.

While the ferrous industry has hailed the government's decision, the revival in pellet exports will take a while because of a weak Chinese economy and subdued international steel markets, according to market participants.

KIOCL produced 2.03mn t of pellets and dispatched 2.07mn t in the 2021-22 fiscal year ending 31 March, of which exports accounted for 98pc.

The Argus 63pc Fe 3.5pc alumina pellet index month-to-date average is $100.52/t in November, down by 34pc against a year earlier. The 2pc alumina index month-to-date average is $105.69/t, down by 38pc from the previous year.

By Sumita Layek