FIMI seeks ban on pellet exports in opposition to Indian producers

Friday, 15 May 2020 10:53:18 (GMT+3)   |   Kolkata

The Indian miners association is seeking a complete ban on exports of iron ore pellets from the country, while pellet producers have sharply opposed the move, claiming it would cripple the industry rendering thousands unemployed, SteelOrbis has learned from several industry sources.

In a letter to the government, the Federation of Indian Mineral Industries (FIMI), the representative body of domestic miners, said, “We request the government to immediately impose a complete ban on exports of pellets from the country, and also to look into the matter of past exports by entities other than state-owned KIOCL Limited, as per the policy of the Directorate General of Foreign Trade (DGFT).”

FIMI claimed that over past years exports of pellets have been rising sharply, depriving domestic steel mills and that, at present when the domestic steel industry and mining sector are struggling to cope with Covid-19, it was essential to impose a ban and ensure high grade raw material supply to the domestic steel industry.

FIMI is seeking all pellet exports barring from state-run KIOCL to be banned with immediate effect.

However, the Pellet Manufacturers’ Association of India (PMAI) said, “Any thought of imposing a ban on pellet exports will be catastrophic as capacities will become unviable, and thousands of workers rendered jobless.”

The PMAI said that, if pellet exports are banned, huge stocks of iron ore fines available across the country would become useless, adding that there are enough mining capacities which could be ramped up if any raw material shortage emerges in the future.

By FIMI’s own estimates, there is an estimated 162 million mt of iron ore fine stockpiles at mines across the country.

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