The pellet prices have surged 18 percent in the last 15 days, which is positive in the short-term, said Manish Sarda, director of Sarda Energy.
Sarda expects new tender prices of pellets in a day or two as the Chinese iron ore futures rose 8 percent in the upper circuit. The current prices are Rs 7,000 ex-Raipur and 10-12 days back prices were hovering around Rs 6,000 and the last traded price in the export market was $124-126
“China is importing a lot from Brazil as well as the Middle Eastern region – the North Africa, MENA region, there also the pellet capacities have shut down,” said Sarda.
“Pellet capacity is 600,000 tonnes and we are producing full 600,000 tonnes. We have an iron ore capacity which is 500,000 tonne, which comes to us from our own captive mines and the coal we are having our linkages, which is to the tune of 70 percent of our requirement,” he further mentioned.
In terms of debt, he said, “Our long-term debt on our group is around Rs 1,400 crore and we are going to go as per our schedule of repayment. We are not doing any early repayments of the debt and out of this debt, Rs 550 crore is for ongoing expansions, which are happening right now.”