Steel Exchange India Sourcing Pellets from BRPL

Andhra Pradesh based steel making company - Steel Exchange India is seen sourcing pellets from Jajpur, Odisha based pellet maker - Brahmani River Pellets (BRPL).

Steel Exchange India has an integrated steel manufacturing hub consisting of 0.5 MnT of sponge iron unit, 0.3 MnT billet unit and a rolling mill. The steel manufacturing hub is located in Vizag, Andhra Pradesh.

As per railway movement data tracked by SteelMint, BRPL is supplying pellets from its Sukinda road siding to siding of Steel Exchange India. The rail freight is around INR 1,150/MT.

According to market sources report to SteelMint, prior to this the steel maker had sourced pellets via road but presently it is sourcing via railways. As per sources it may not be a bulk deal but few more rake supplies which may continue till end of Oct'16.

It is to be noted that the Jajpur based pellet maker - BRPL is actively participating in exports and not seen supplying much quantities in domestic market. The pellet maker raised its pellet export considerably from 0.27 MnT in Q1 FY17 to 0.52 MnT in Q2 FY17 over improved pellet demand from China and high export offers over high pellet premium. It increased its iron ore sourcing by 11% Q-o-Q from 0.61 MnT in Q1 FY17 to 0.68 MnT in Q2 FY17.

Steel Exchange India also sources iron ore from NMDC's Bailadila mines in Chhattisgarh.