Domestic Pellet Rake Movement Falls by 20% in Jul’16

32 pellet rakes were dispatched in Jul’16 compared to 40 rakes in Jun’16.

According to pellet rake movement data maintained with SteelMint, movement by eastern India based pellet plants decreased by 20% M-o-M in Jul’16.

JSPL’s domestic pellet movement down by 44% in Jul’16 – Jindal Steel & Power dispatched 15 pellet rakes in Jul’16 compared to 27 rakes in Jun’16. Its supply to Bhushan Steel fell from 23 rakes in Jun’16 to 10 rakes in Jul’16.

Arya Iron & Steel has kept itself away from export and has remained active in domestic market. The pellet maker supplied 14 rakes of pellets in Jul’16 against 12 rakes in Jun’16.

Brahmani River Pellets supplied 3 pellet rakes out of which 2 were supplied to Bhushan Steel.

Reasons behind fall in domestic pellet movement – Rising pellet prices in China kept export realizations better for Indian exporters. Limited pellet buying interest in domestic market and increased demand of Indian pellets in China are other reasons behind eastern India pellet makers inclination towards exports.

Barbil pellet prices fell by INR 100/MT in Jul’16 – Towards the mid of Jul’16, JSPL reduced pellet offers from INR 3,100/MT (loaded to wagons) to INR 3,000/MT (loaded to wagons). Arya Iron & Steel kept its offers unchanged throughout the month of Jul’16 at INR 2,850/MT (loaded to wagons).

Pellet rake movement: Jul’16 vs Jun’16

Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways