Pakistan to import iron ore from Iran

The domestically available iron ore's quality doesn't conform to the PSM requirement and it can be utilized after blending with imported raw material. Domestically, PSM is procuring iron ore from Balochistan mines for its operation. Import of iron ore from Iran is cheaper than international market and it will take a few days to reach Pakistan, therefore, PSM has decided to procure iron ore from Balochistan as well as import raw material from the neighboring country to continue steel production in the mill. Sources said that initially, Pakistan Steel has decided to import some 40,000 tons of iron ore from Iran and two Letters of Credit (LCs) have been established to import raw material. Sources said that imported raw material will reach in two consignments of some 20,000 tons each. A ship has been nominated for first consignment, which is expected to reach Port Qasim in the third week of this month. The second one is likely to reach in the fourth week or first week of June this year, sources added. They said that shortage of funds and urgent need of iron ore have forced PSM to import raw material from Iran, wherefrom supply will take a few days as compared to other countries. With arrival of iron ore, production capacity of Pakistan Steel would be enhanced as the low production has been attributed to shortage of raw material including iron ore and coal. "PSM management has also made arrangements for import of coal.