Pellet Rake Movement Stable in Jun’16

Eastern India based pellet makers dispatched 40 rakes in Jun’16 against 42 rakes in May’16.

According to pellet railway movement data tracked by SteelMint, dispatches by east India based pellet plants remained stable on monthly premises. The pellet makers loaded 40 rakes in Jun’16 against 42 rakes in May’16.

In Jun’16, Jindal Steel & Power (JSPL) supplied 27 pellet rakes, Arya Iron & Steel supplied 12 rakes and Brahmani River Pellets (BRPL) supplied single pellet rake in domestic market.

Significant increase (21% M-o-M) in pellet purchases of Bhushan Steel has been noticed in Jun’16. It raised its pellet procurement from 19 rakes in May’16 to 23 rakes in Jun’16.

Limited pellet buying interest in domestic market, good demand of Indian pellets in China and good realization kept major eastern India pellet makers inclined towards exports in Jun’16 too.

Barbil pellet prices remain range-bound in Jun’16

Towards the beginning of Jun’16, Barbil pellet prices fell by INR 100/MT and were seen in the range of INR 2,850-3,000/MT (loaded to wagons). The prices remained at these levels for major part of the month. However towards the end of Jun’16, offers moved up INR 2,850-3,100/MT (loaded to wagons).

Pellet rake movement : Jun’16 Vs May’16

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