Pellet movement through railways remained almost unchanged in Oct’15 as compared to Sept’15. In Oct’15, total, 327,250 MT pellets were transported through 85 rakes. Tata Steel continued to be the major buyer.
Jindal Steel & Power Ltd, a major supplier of pellets in merchant market and having pellet capacity of 9 MnT, supplied 45 rakes i.e. 173,250 MT pellets in Oct’15 against 50 rakes in Sept’15 i.e. 192,500 MT pellets. Pellet purchases from Jindial Steel & Power Ltd, dropped down by 10%.
Another major supplier, BRPL, having a 4 MnT benefication plant in Odisha, supplied 88,550 MT pellets in Oct’15 against 46,200 MT in Sept’15.
Ardent Steel Ltd supplied only 42,350 MT pellets via 11 rakes in Oct’15. It had supplied 30,800 MT pellets via 8 rakes in Sept’15. Another major pellet maker, Arya Iron & Steel’s pellet plant was under maintenance shutdown.
Pellet plants across India are under pressure and are running under 30-40% capacity utilization. Constant decline in iron lump prices by Odisha miners, sharp fall in prices of pellet sponge coupled with reduced margins and cheaper availability of imported ore is driving Indian pellet makers to run their plants under losses.
Total Pellet Rake Movement in Oct’15
| Pellet Sellers | Pellet Buyers | Sept’15 | Oct’15 |
| Jindal Steel & Power Ltd | Tata steel | 37 | 30 |
| Bhushan Steel Ltd | – | 10 | |
| Super Smelters Ltd | 6 | 2 | |
| Jharkhand Ispat Pvt Ltd | – | 1 | |
| Shah Sponge & Power Ltd | 1 | 1 | |
| Gagan Ferrotech | 1 | 1 | |
| Bravo Sponge Iron Pvt Ltd | 1 | – | |
| Maithan Ispat | 1 | – | |
| Aryan Steel & Power | 1 | – | |
| Gallant Ispat | 2 | – | |
| Total | 50 | 45 | |
| Brahmani River Pellets Ltd | Bhushan Steel Ltd | 6 | 19 |
| Tata steel | 6 | 4 | |
| Total | 12 | 23 | |
| Ardent Steel Ltd | Rashmi Ispat Ltd. | – | 2 |
| Brahmaputra Metaliks Ltd | 1 | 2 | |
| Shyam Steel | – | 1 | |
| Aloke Steels Industries Pvt.Ltd | – | 1 | |
| Shah Sponge & Power Ltd | – | 1 | |
| Gallant Ispat | 1 | 2 | |
| Maithan Ispat | – | 1 | |
| Rajshri Iron Industries Pvt Ltd | – | 1 | |
| Jharkhand Ispat Pvt Ltd | 4 | – | |
| Super Smelters Ltd | 1 | – | |
| Sova Ispat Ltd | 1 | – | |
| Total | 8 | 11 | |
| Odisha Minerals Ltd (Adhunik) |
Tata steel |
6 | 5 |
| Total | 6 | 5 | |
| Arya Iron & Steel Ltd | Shivam Dhatu udyog Pvt Ltd | 1 | 1 |
| SPS Steel Rolling Mills | 2 | – | |
| Rajshri Iron Industries Pvt Ltd | 1 | – | |
| Bihar Foundry & Castings Ltd | 1 | – | |
| Adhunik Metalik Ltd | 1 | – | |
| Brahmaputra Metaliks Ltd | 1 | – | |
| Total | 7 | 1 | |
| Grand Total | 83 | 85 | |
Source: SteelMint
Note: Each rake carries approx 3,850 MT Pellet
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