Pellet rake movement by major east India based pellet makers remained stable in May’16. The pellet manufacturers supplied 42 pellet rakes in May’16 compared to 41 rakes in Apr’16. May’16 observed only handful number of pellet suppliers in domestic market.
As per railway movement tracked by SteelMint, JSPL supplied 26 rakes while Arya Iron & Steel loaded 16 rakes of pellets in May’16. BRPL did not supply any pellet rake in May’16. Jamshedpur based Adhunik Metaliks resumed pellet sales last month and as per sources the pellet manufacturer has supplied some quantity via road.
Barbil pellet offers which were seen hovering in the range of INR 3,000-3,200/MT (loaded to wagons) in Apr’16 fell slightly in May’16. Last month offers were seen around INR 2,900-3,100/MT (loaded to wagons).
Pellet buying in domestic market remained weak with limited buyers using pellet for sponge production. P-DRI (78 FeM) prices in Durgapur hit level of INR 10,000/MT (ex-works) in May’16.
Towards the end of May’16, an Odisha pellet exporter which had kept itself away from domestic market from about a couple of months was heard to offer pellets domestic market post decline in global pellet prices. Pellet (Fe 65%) prices which were seen at USD 85/MT, CFR China in beginning of May’16 dropped to USD 72/MT, CFR China by month end.
Pellet railway movement – May’16 Vs Apr’16
|
Seller |
Buyer | Apr’16 |
May’16 |
| Jindal Steel & Power Ltd | Bhushan Steel Ltd | 13 | 19 |
| Gallant Ispat | 3 | 2 | |
| Gagan Ferrotech | – | 2 | |
| Sunflag Iron & Steel Company Ltd | – | 1 | |
| ElectroSteel Steels Ltd | 1 | 1 | |
| Rajshri Iron Industries Pvt Ltd | 2 | 1 | |
| Maithan Ispat | 2 | – | |
| Santpuria Alloys | 1 | – | |
| Vision Ispat | 3 | – | |
| Satyam Smelters | 1 | – | |
| Shyam Steel | 2 | – | |
| Total | 28 | 26 | |
| Arya Iron & Steel Ltd | ElectroSteel Steels Ltd | – | 5 |
| Gagan Ferrotech | 4 | 3 | |
| Jharkhand Ispat Pvt Ltd | 2 | 2 | |
| Sova Ispat Ltd | – | 2 | |
| Prakash Industries Ltd. | – | 1 | |
| Satyam Iron & Steel Co Pvt Ltd | 1 | 1 | |
| Brahmaputra Metaliks Ltd | – | 1 | |
| Howrah Gases Ltd | – | 1 | |
| Total | 7 | 16 | |
| Brahmani River Pellets Ltd | Prakash Industries Ltd. | 1 | – |
| Bhushan Steel Ltd | 5 | – | |
| Total | 6 | – | |
| Grand Total | 41 | 42 | |
Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways
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