Higher realizations in exports over domestic market kept pellet makers more inclined towards export market.
According to pellet rake movement data maintained with SteelMint, movement by eastern India based pellet plants decreased in Aug’16 by nearly 50% M-o-M. 17 pellet rakes were dispatched in Aug’16 compared to 32 rakes in Jul’16.
Increased pellet premium and strong demand of high grade pellets in China benefitted Indian pellet makers with higher export realizations.
No domestic rake movement of Jindal Steel & Power (JSPL) was noticed in Aug’16. In Jul’16 the pellet maker supplied 15 rakes in domestic market. The reason behind sharp fall was increase in pellet exports. In Aug’16, JSPL exported 0.26 MnT pellets compared to 0.05 MnT in Jul’16.
Arya iron & steel supplied 13 pellet rakes in Aug’16 against 14 rakes in Jul’16. No pellet export shipment by the pellet maker was seen last month.
Brahmani River pellets sold 4 rakes to Bhushan Steel in Aug’16.
Barbil pellet makers restrained offering for domestic market – In Aug’16, Barbil based pellet makers restrained quoting offers in domestic market and were heard giving export offers.
Pellet rake movement: Jul’16 vs Aug’16
|
Seller |
Buyer | Jul’16 |
Aug’16 |
| Jindal Steel & Power Ltd | Bhushan Steel Ltd | 10 | – |
| Gallant Ispat | 4 | – | |
| ElectroSteel Steels Ltd | 1 | – | |
| Total | 15 | 0 | |
| Arya Iron & Steel Ltd | Brahmaputra Metaliks Ltd | 4 | 1 |
| Jharkhand Ispat Pvt Ltd | 3 | – | |
| Rajshri Iron Industries Pvt Ltd | 2 | 1 | |
| Gallant Ispat | 2 | 2 | |
| Shyam Steel | 1 | – | |
| Howrah Gases Ltd | 1 | 1 | |
| Maan Steel & Power Ltd | 1 | 1 | |
| Sova Ispat Ltd | – | – | |
| Gagan Ferrotech | – | – | |
| Bhagwati Sponge Pvt Ltd | – | 2 | |
| Satyam Iron & Steel Co. Pvt Ltd | – | 1 | |
| Satyam Smelters | – | 1 | |
| Shah Sponge & Power | – | 1 | |
| Ispat Damodar | – | 2 | |
| Total | 14 | 13 | |
| Brahmani River Pellets Ltd | Bhushan Steel Ltd | 2 | 4 |
| Sova Ispat Ltd | 1 | – | |
| Prakash Industries Ltd. | – | – | |
| Total | 3 | 4 | |
| Grand Total | 32 | 17 | |
Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways
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