Pellet prices in eastern and central India rose sharply by INR 300-700/MT M-o-M in Sept’16 owing to increase in fines prices and improved demand from sponge makers.
According to pellet rake movement data maintained with SteelMint, movement during Sept’16 by eastern India based pellet plants increased by 82%. 17 pellet rakes were dispatched in Aug’16 compared to 31 rakes in Sept’16.
Jindal Steel & Power supplied 20 pellets rakes to Bhushan Steel last month which was nil in Aug’16.
Arya Iron & Steel supplied 11 rakes in Sept’16 against 13 rakes in Aug’16.
Domestic pellet offers moved up sharply in Sept’16 – In line with increase in prices of Odisha iron ore fines and pellet sponge, pellet prices in eastern and central India rose sharply last month. Pellet offers moved up by INR 500/MT in Jharsuguda and by INR 700/MT in Raipur M-o-M.
Pellet prices went up on the backdrop of increase in fines prices by Odisha merchant miners. P-DRI price hike was another factor which led to increase in pellet prices. P-DRI prices in Jharsuguda have increased by INR 2,050/MT M-o-M and are presently seen at INR 13,350/MT (ex-works).
Pellet rake movement: Aug’16 vs Sept’16
|
Seller |
Buyer | Sept’16 |
Aug’16 |
| Jindal Steel & Power Ltd | Bhushan Steel Ltd | 20 | – |
| Arya Iron & Steel Ltd | Jharkhand Ispat Pvt Ltd | 3 | – |
| Brahmaputra Metaliks Ltd | 3 | 1 | |
| Haldia Steel | 1 | – | |
| Shyam Steel | 1 | – | |
| Rajshri Iron Industries Pvt Ltd | 1 | 1 | |
| Gagan Ferrotech | 1 | – | |
| Shah Sponge & Power Ltd | 1 | 1 | |
| Satyam Iron & Steel Co Pvt Ltd | – | 1 | |
| Gallant Ispat | – | 2 | |
| Satyam Smelters | – | 1 | |
| Maan Steel & Power Ltd | – | 1 | |
| Howrah Gases Ltd | – | 1 | |
| Bhagwati Sponge Pvt Ltd | – | 2 | |
| Ispat Damodar Ltd | – | 2 | |
| Total | 11 | 13 | |
| Brahmani River Pellets Ltd | Bhushan Steel Ltd | – | 4 |
| Grand Total | 31 | 17 | |
Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways
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