Pellet manufacturers oppose attempts to reimpose duty on exports

At present, pellets, an intermediate product in the process of steel making, enjoy a duty waiver regardless of their iron content

Iron ore pellet manufacturers are opposed to a proposal from merchant mining entities to reimpose export duty on it. At present, pellets, an intermediate product in the process of steel making, enjoy a duty waiver regardless of iron content.
 
Since pellets compete directly with iron ore lumps in the domestic market, they have limited demand, as lumpy ore offers a price advantage to steel companies. The only viable outlet for pellet makers is export. Apart from fragile demand in the domestic market, they are also wrestling with other business headwinds like high conversion cost and unavailability of ore fines