Pellet rake supply of JSPL and Arya Iron & Steel in domestic market remain stable. Ardent Steels resumed pellet production in Oct’16 following which it participated in pellet exports.
According to pellet rake movement data maintained with SteelMint, movement during Oct’16 by eastern India based pellet plants increased by 45%. 45 rakes were dispatched in Oct’16 against 31 rakes in Sept’16.
Gallant Ispat (Uttar Pradesh) resumed pellet purchases from JSPL – Jindal Steel & Power (JSPL) supplied 20 pellets rakes in Oct’16 out of which 18 rakes were dispatched to Bhushan Steel and the remaining two were supplied to Uttar Pradesh based steel maker – Gallant Ispat. Gallant Ispat had last sourced pellets (4 rakes) from JSPL in Jul’16.
Steel Exchange India sourced pellet from BRPL via rake movement – After a gap of one month, Brahmani River Pellets (BRPL) supplied pellets in domestic market. Pellet export being more attractive the pellet maker exported 0.1 MnT pellets in Oct’16 and supplied only three rakes in domestic market. Out of this, two rakes were sourced by Andhra Pradesh based steel maker – Steel Exchange India.
Arya Iron & Steel supplied 12 pellet rakes in Oct’16. Apart from this the pellet maker also exported a shipment of 47,000 MT pellets to China last month.
Ardent Steel resumed pellet production last month – Keonjhar (Odisha) based pellet manufacturer – Ardent Steel resumed pellet production after a span of ten months in Oct’16 and loaded 10 pellet rakes for export purpose to Dhamra port siding. It supplied rakes to Bagadiya Brothers. In Oct’16, Bagadiya Brothers exported 73,000 MT pellets to China.
Pellet rake movement: Sept’16 vs Oct’16
|
Consignor |
Consignee | Sept’16 |
Oct’16 |
| Jindal Steel & Power Ltd | Bhushan Steel | 20 | 18 |
| Gallant Ispat | – | 2 | |
| Total | 20 | 20 | |
| Arya Iron & Steel Ltd | Brahmaputra Metaliks | 3 | 4 |
| Sova Ispat | – | 2 | |
| Shyam Steel | 1 | 1 | |
| Jharkhand Ispat | 3 | 1 | |
| Singhal Energy | – | 1 | |
| Singhal Enterprises | – | 1 | |
| Satyam Smelters | – | 1 | |
| Aloke Steels Industries | – | 1 | |
| Haldia Steel | 1 | – | |
| Shah Sponge & Power | 1 | – | |
| Gagan Ferrotech | 1 | – | |
| Rajshri Iron Industries | 1 | – | |
| Total | 11 | 12 | |
| Ardent Steel Ltd | Bagadiya Brothers | – | 10 |
| – | – | ||
| Brahmani River Pellets Ltd | Steel Exchange India | – | 2 |
| Bhushan Steel | – | 1 | |
| Total | – | 3 | |
| Grand Total | 31 | 45 | |
Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways
Pellet offers in eastern India remained strong towards beginning of Oct’16 amid increase in sponge prices. However amid limited trades owing to holidays and decline in sponge prices, fewer regions in eastern India observed reduction in pellet prices.
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