Pellet manufacturers body CSSMA warns against the consequences of ban or imposition of an export levy on pellet iron exports. Chhattisgarh Sponge and Steel Manufacturers Association (CSSMA) stated in a press release that if government tries to curb exports pellet makers would have to shut operations and they would be no buyers for surplus iron ore fines.
CSSMA represents both pellet manufacturers as well as major sponge iron manufacturers in Chhattisgarh, which is India’s mineral-rich state. CSSMA has raised the issue with various ministries and said that pellet manufacturers are misrepresented by another association Chhattisgarh Sponge Iron Manufacturers Association (CG SIMA). This association had sought 30pc duty on pellet exports. Actions such as a ban on iron pellet exports or imposition of an export duty would lead to loss of investments and foreign exchange.
“Pellets are produced from iron ore fines of high grade and used as a feedstock by steel plants and sponge manufacturers. CSSMA alleged that the other association CGSIMA is considering pellets as a mined material when it is actually a value-added product made from ores. Pellet manufacturers buy a large amount of iron ore fines from commercial miners. Shuttering of pellet plants will adversely impact the Mining Industry and the economy, said Secretary-General of CSSMA. Efficient utilization of pellets reduces import of coking coal as well, the release said.
CSSMA refuted CGSIMA’s claim that the expansion of India’s sponge Iron capacities is impossible or limited due to a shortage of raw material. CSSMA opined that iron ore pellets can be exported as various companies have a surplus of iron ore lumps/fines which can be better utilized by converting into pellets.