As per the railway movement tracked by SteelMint, pellet movement through railways increases by 35.7% in Mar’16 as compared to Feb’16. Total, 219,450 MT pellets were moved via 57 rakes in Mar’16 as compared to 161,700 MT pellets via 42 rakes in Feb’16.
Jindal Steel & Power Limited, a merchant suppliers of pellets, supplied 107,800 MT pellets via 28 rakes in Mar’16 as compared to 77,000 MT pellets via 20 rakes in Feb’16. Pellet movement rose by 40% M-o-M. JSPL posses pellet plant with capacity of 9 MnT pa at Barbil, Odisha.
Brahmani River Pellets Ltd (BRPL), having installed capacity of 4 MnT pa, supplied 96,250 MT pellets via 25 rakes in merchant market. The pellet maker supplied, 17 rakes i.e. 65,450 MT pellets in the month of Feb’16.
Arya Iron & Steel, another major supplier, supplied only 4 rakes i.e. 15,400 MT pellets in Mar’16.
Overall pellet buying remained thin in merchant market. Current offers for Fe 63% pellets by JSPL are at INR 3,200/MT (loaded into wagons). To the contrary, another Barbil based pellet maker-Arya Iron & Steel has reduced offers by INR 200/MT and current offers are at INR 3,000/MT (loaded to wagons). However, market sources shared that there is not much buying interest seen at these levels.
Pellet rake movement in Mar’16
| Seller | Buyer | Mar’16 | Feb’16 |
| Jindal Steel & Power | Gallant Ispat | 7 | 3 |
| Jharkhand Ispat Pvt Ltd | 5 | – | |
| Gagan Ferrotech | 5 | 2 | |
| Adhunik Alloys & Power Ltd | 3 | – | |
| Satyam Iron & Steel Co Pvt Ltd | 3 | 3 | |
| Maheshwari Ispat Ltd | 3 | 2 | |
| Santpuria Alloys | 1 | – | |
| ElectroSteel Steels Ltd | 1 | – | |
| Satyam Smelters | – | 3 | |
| Super Smelters Ltd | – | 3 | |
| Public | – | 2 | |
| Rishabh Sponge Pvt Ltd | – | 1 | |
| Maithan Ispat | – | 1 | |
| Total | 28 | 20 | |
| Brahmani River Pellets | Bhushan Steel Ltd | 7 | 5 |
| Prakash Industries Ltd. | 6 | – | |
| Anjani Steels Ltd | 3 | – | |
| Sova Ispat Ltd | 2 | 5 | |
| Rishabh Sponge Pvt Ltd | 2 | – | |
| Shyam Steel | 1 | – | |
| Bravo Sponge Iron Pvt Ltd | 1 | 2 | |
| Super Smelters Ltd | 1 | – | |
| Gagan Ferrotech | 1 | 1 | |
| Shakambari Ispat & Power Ltd | 1 | 1 | |
| Rashmi Ispat Ltd. | – | 3 | |
| Total | 25 | 17 | |
| Arya Iron & Steel | Howrah Gases Ltd | 3 | 2 |
| Super Smelters Ltd | 1 | – | |
| SPS Steel Rolling Mills | – | 1 | |
| Dhanbad Fuesl Ltd | – | 1 | |
| Calstar Sponge Ltd | – | 1 | |
| Total | 4 | 5 | |
| Grand Total | 57 | 42 | |
Source: SteelMint
Note: Each rake carries approx 3,850 MT Pellet
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