Tata Steel starts pellet purchases from merchant market on account of closure of Noamundi mines.
Pellet movement through railways increased by 30% in Aug’15 against July’15. Movement of pellet has increased from Odisha to central India since Chhattisgarh based sponge manufacturers began prefering Odisha pellet over NMDC lump. Last month, total 315,700 MT pellets were transported through 82 rakes.
Starting Apr-Aug’15, movement of pellet consistently increased. During monsoon, sponge manufacturers prefer pellets as their raw material over lump since lump contains more moisture. Hence, pellet movement increased subsequently in the above mentioned time.
Jindal Steel & Power Ltd, a major supplier of Indian pellets having pellet production capacity of 9 MnT, supplied 138,600 MT pellets via 36 rakes in Aug’15 against 103,950 MT pellets via 27 rakes in July’15.
Arya Iron & Steel, a major merchant supplier of pellets in Odisha, supplied 103,950 MT pellets via 27 rakes last month. It had supplied 57,750 MT pellets via 15 rakes in July’15.
BRPL, having a 4 MnT beneficiation plant in Odisha, supplied 46,200 MT pellets in Aug’15 against 34,650 MT pellets in July’15.
Tata Steel Procured 61,600 MT pellets from Jindal Steel & Power Ltd
In Aug’15, Tata Steel procured around 61,600 MT pellets via 16 rakes from Jindal Steel & Power and 1 rake i.e. 3,850 MT pellets from BRPL. Since the government had stopped iron ore dispatches from Noamundi mines in Jharkhand, purchase of pellets from the merchant market is incremented.
Total Pellet Rake Movement in Aug’15
| Seller | Buyer | Jul-15 | Aug-15 |
| Jindal Steel & Power | Tata steel | – | 16 |
| Super Smelters | 5 | 4 | |
| Gallant Ispat | 2 | 3 | |
| Gagan Ferrotech | 1 | 2 | |
| Bravo Sponge Iron | – | 2 | |
| Aryan Steel & Power | – | 2 | |
| Shah Sponge & Power | 1 | 2 | |
| Uttam Galva Metalik | – | 1 | |
| Maithan Ispat | 2 | 1 | |
| Shakambari Ispat & Power | 2 | 1 | |
| Narsimha Iron & Steel | – | 1 | |
| Prakash Industries | 3 | 1 | |
| Savitri Sponge Iron | 1 | – | |
| B.S. Sponge | 1 | – | |
| Topworth Steel & Power | 3 | – | |
| Jharkhand Ispat | 1 | – | |
| Rajshri Iron Industries | 2 | – | |
| Crest Steel & Power | 1 | – | |
| Brahmaputra Metaliks | 1 | – | |
| Mangal Sponge Steel | 1 | – | |
| Total | 27 | 36 | |
| Arya Iron & Steel | Sova Ispat | 1 | 5 |
| Prakash Industries | 1 | 3 | |
| Bihar Foundry & Castings | 2 | 3 | |
| SPS Steel Rolling Mills | 1 | 2 | |
| Rajshri Iron Industries | – | 2 | |
| ElectroSteel Steels | – | 2 | |
| Super Smelters | – | 2 | |
| Adhunik Metalik | – | 2 | |
| Ispat Damodar | 2 | 2 | |
| Keshar Sponge & Energy | 1 | 1 | |
| Haldia Steel | – | 1 | |
| Shivam Dhatu udyog | – | 1 | |
| Gallant Ispat | 1 | 1 | |
| M B Sponge & Power | 1 | – | |
| Maan Steel & Power | 1 | – | |
| Brahmaputra Metaliks | 2 | – | |
| Concast Bengal Industry | 1 | – | |
| API Ispat & Power | 1 | – | |
| Total | 15 | 27 | |
| Brahmani River Pellets | Bhushan Steel | 6 | 4 |
| Super Smelters | – | 2 | |
| Gallant Ispat | – | 2 | |
| Rashmi Ispat | 2 | 2 | |
| Tata steel | – | 1 | |
| SPS Steel Rolling Mills | 1 | 1 | |
| Total | 9 | 12 | |
| Ardent Steel | Brahmaputra Metaliks | – | 1 |
| Super Smelters | 1 | 1 | |
| Sova Ispat | 2 | 1 | |
| Dhanbad Fuesl | – | 1 | |
| Gagan Ferrotech | 1 | 1 | |
| Rashmi Ispat | – | 1 | |
| Satyam Smelter | 3 | – | |
| Satyam Iron & Steel | 2 | – | |
| Maan Steel & Power | 1 | – | |
| Total | 10 | 6 | |
| Odisha Minerals (Adhunik) | Steel Authority of India | – | 1 |
| Adhunik Metalik | 1 | – | |
| Total | 1 | 1 | |
| MSP Sponge | Howrah Gases | 1 | – |
| Grand Total | 63 | 82 | |
Source: SteelMint Research
Note: Each rake carries approx 3,850 MT Pellet
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