Indian state-controlled iron ore pellet producer KIOCL has signed initial agreements with international trading companies Glencore and Steel Mont for sales into the European market, including the UK.
KIOCL has been aiming to generate more overseas sales in ex-China markets, with it earlier this year entering into an initial agreement to sell pellet to Abu Dhabi-based Emirates Steel.
KIOCL is a key producer of low-alumina pellet, with less than 3pc Al content, while its Fe content at 64pc lines up with other tier-one Indian producers such as BRPL and Jindal Steel. The company ships its pellet from New Mangalore port in south India.
India increased pellet sales to Europe in the 2018-19 fiscal year ended 31 March, as an accident at Brazilian mining firm Vale's Feijao iron ore mine has squeezed global pellet supplies.
India's pellet sales to the UK increased by over 500pc from a year earlier to 371,650t in 2018-19, with exports made for the first time to the Netherlands with 54,430t, Poland 66,920t and Turkey 53,990t.
KIOCL produced around 2.24mn t of iron ore pellet in 2018-19. It typically exports around 80pc of its production. The company aims to produce 3mn t of pellet in 2019-20.
