According to pellet rake movement data maintained with SteelMint, movement during Dec’16 by eastern India based pellet plants fell 22% M-o-M. Major eastern India based pellet makers dispatched 28 pellet rakes last month compared to 36 rakes in Nov’16.
Tata Steel resumes sourcing pellets from merchant market – After a long gap of nearly an year, Tata Steel is seen procuring pellets from merchant market. The steel maker procured 3 rakes from JSPL in Dec’16. As per market sources report to SteelMint, JSPL will supply nearly 40 pellet rakes to Tata Steel in the near term and the deal was heard to be concluded at INR 4,150/MT (loaded to wagons).
The company had last sourced pellets from merchant market in Oct’15 whereby it had procured 39 rakes from merchant market. Majority of it was procured from JSPL.
JSPL’s pellet rake supply fell 20% from 20 rakes in Nov’16 to 16 rakes in Dec’16.
Keonjhar based pellet manufacturer – Ardent Steel loaded 3 rakes in Dec’16 against 9 rakes in Nov’16. It supplied rakes to Bagadiya Brothers for export purpose.
Andhra Pradesh based steel maker – Steel Exchange India procured 2 pellet rakes from Brahmani River Pellets in Dec’16.
Pellet rake movement : Dec’16 vs Nov’16
|
Seller |
Buyer | Dec’16 |
Nov’16 |
| Jindal Steel & Power Ltd | Bhushan Steel Ltd | 13 | 20 |
| Tata Steel | 3 | – | |
| Total | 16 | 20 | |
| Arya Iron & Steel Ltd | Arya Iron & Steel Ltd (for export purpose) | 3 | – |
| Dhanbad Fuesl Ltd | 1 | – | |
| Brahmaputra Metaliks Ltd | 1 | 1 | |
| Bhagwati Sponge Pvt Ltd | 1 | – | |
| Bhushan Steel Ltd | 1 | 1 | |
| Aloke Steels Industries Pvt.Ltd | – | 1 | |
| Shyam Steel | – | 2 | |
| ElectroSteel Steels Ltd | – | 2 | |
| Total | 7 | 7 | |
| Ardent Steel Ltd | Bagadiya Brothers Pvt Ltd (for export purpose) | 3 | 9 |
| Brahmani River Pellets Ltd | Steel Exchange India Ltd | 2 | – |
| Grand Total | 28 | 36 | |
Each rake carries approximately 3,850 MT pellets
Source: SteelMint Research, Railways
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