Tata Steel, having an annual crude steel capacity of 9 MnT, has reduced Iron Pellet purchases from the domestic market as its Jharkhand and Odisha mines have got the permit to operate.
Tata Steel has consistently been sourcing Pellets from the merchant market after the Supreme Court had ordered to temporary suspend mines running under 2nd deemed renewal. The company bought 167,000 MT Pellet in December and about 140,000 MT in November, 2014.
According to special report on Indian Iron ore railway movement maintained by SteelMint, the company has loaded about 43 rakes of Pellets in Dec’14 against 36 rakes in Nov’14. Each rake contains about 3,900 MT of Pellet.
Key Highlights
- Tata Steel cuts Iron pellet purchases from the domestic market
- Pellet prices are under pressure in Eastern region of India
- Fe 63% Pellet prices are in the range of around INR 6,800-7,000/MT (as per loaded to wagons at Barbil, Odisha)
Tata Steel’s Pellet Movement through Rakes
| Pellet Manufacturers |
Nov’14 |
Dec’14 |
| Brahmani River Pellets | 21 | 20 |
| Jindal Steel & Power | 15 | 23 |
| Total | 36 | 43 |
Total Pellet Movement through Rakes
|
Domestic Pellet Rake Movement |
||
| Pellet Manufacturers | Consignee | Dec’14 |
| Brahmani River Pellets | Tata Steel | 20 |
| Monnet Ispat & Energy | 4 | |
| Prakash Industries | 3 | |
| Total | 27 | |
| Jindal Steel & Power | Tata Steel | 23 |
| Total | 23 | |
| Arya Iron & Steel | Brahmaputra Metaliks | 4 |
| Super Smelters | 3 | |
| Maan Steel & Power | 3 | |
| Rashmi Ispat | 2 | |
| SPS Steel Rolling | 1 | |
| Rajshri Iron Industries | 1 | |
| Jharkhand Ispat | 1 | |
| Satyam Smelters | 1 | |
| Satyam Iron & Steel | 1 | |
| Total | 17 | |
| MSP Sponge | Prakash Industries | 1 |
| Howrah Gases | 1 | |
| Total | 2 | |
| Grand Total | 69 | |
Source: Indian Railways
Note: Not include rakes loaded from Jindal Saw (Bhilwara, Rajasthan)
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