With a major setback, Tata Steel, whose mines in Odisha/Jharkhand are closed owing to 2nd deemed renewal, has been forced to source Iron ore/Pellets from merchant manufacturers at market price.
Tata Steel, which has a crude steel capacity of over 9 MnT, has sourced about 74,000 MT Iron pellets in the month of November (till 25 Nov, 2014) against about 97,000 MT in previous month.
According to Railway movement data, managed by SteelMint, it is observed that Tata Steel has sourced 14 rakes of Iron pellets from BRPL (Brahamani River Pellets Ltd, company of Stemcor) and 5 rakes from Jindal Steel & Power. Each rake carries roughly 3,900 MT.
Current Pellet prices are hovering in the range of INR 7,800-8,000/MT in Barbil region and around INR 7,500-7,700/MT in Kendujhar region.
Pellet Rakes loaded by Tata Steel
| Pellet Manufacturers | Oct’14 | Nov’14* | Total |
| Brahmani River Pellets | 9 | 14 | 23 |
| Jindal Steel & Power | 16 | 5 | 21 |
| Total | 25 | 19 | 44 |
Source: SteelMint Research
* Data till 25 Nov’14
Total Domestic Pellet Rake Movement
| Pellet Manufacturers | Oct’14 | Nov’14* | Total |
| Brahmani River Pellets | 42 | 35 | 77 |
| Jindal Steel & Power | 24 | 7 | 31 |
| Arya Iron & Steel | 11 | 7 | 18 |
| MSP Sponge | 3 | 3 | 6 |
| Bhushan Power & Steel | 2 | 1 | 3 |
| Total | 82 | 53 | 135 |
Source: SteelMint Research
* Data till 25 Nov’14
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SteelMint – Iron Ore Railway Movement is a special report on Iron ore carried through railways, which contributes 80-85% of Iron ore movement in India. In this report, we track three zones – South Eastern (SER), South West (SW) & East Coast (ECO). Report is being published on a monthly basis and subscribed by many big steel companies in India and worldwide.
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With the help of this report, one can identify quantity of Iron ore moved by any steel plant through railways
- Can estimate steel production
- Can identify states where Iron ore is being taken from
- Competitor analysis
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