JSPL and Essar Pellet Production Rises in FY16- Reports

Pellet production of Jindal Steel & Power (JSPL) has increased sharply by 43% Y-o-Y from 3.22 MnT in FY15 to 4.59 MnT in FY16.

Pellet production of Essar Steel has increased in Q4 FY16 was registered at 1.93 MnT (up by 48% Y-o-Y) as per the reports. Essar Steel’s pellet production was seen at 4.74 MnT in FY15 and we expect its pellet production must have stood around 5.9 MnT in FY16 as per the iron ore sourcing pattern of the steel maker.

Both the steel biggies have raised pellet production as they have ramped up their steel making capacities.

India has installed pellet capacity of 84 MnT pa in FY16 with nearly 49% of the capacity concentrated in eastern regions of India.

Indian pellet industry under pressure – Currently Indian pellet industry is going through tough times and the pellet makers are struggling with subdued domestic buying interest, declining prices and high cost of production. Presently Indian pellet plants are seen operating with 40-50% capacity utilization and majority of them have restricted themselves for captive consumption rather than going for merchant sales.