Pellet Rake Movement Dips by 20% in Nov’16

Dull demand in domestic market refrained major manufactures from supplying pellets in domestic market. Better realizations in export attracted pellet makers more than domestic prices.

According to pellet rake movement data maintained with SteelMint, movement during Nov’16 by eastern India based pellet plants fell 20% M-o-M. Major eastern India based pellet makers dispatched 36 pellet rakes last month compared to 45 rakes in Oct’16.

JSPL’s pellet supply in domestic market stable in Nov’16 – JSPL supplied 20 pellet rakes in Nov’16. All the rakes were procured by Bhushan Steel. The pellet maker continued to participate actively in exports amid higher prices, increased pellet premium and limited buying interest in domestic market.

Pellet dispatches of Arya Iron & Steel fell by 42% – Barbil based pellet maker – Arya Iron & Steel supplied only 7 pellet rakes in Nov’16 compared to 12 rakes in Oct’16. The pellet maker kept itself away from quoting offers in domestic market last month and as per market sources the supplies made in Nov’16 were those of the previous bookings.

Keonjhar based pellet manufacturer – Ardent Steel loaded 9 rakes in Nov’16 against 10 rakes in Oct’16. It supplied rakes to Bagadiya Brothers for export purpose.

Pellet rake movement: Nov’16 vs Oct’16

 Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways