1. Movement for exports continues to remain nil for 2nd consecutive month
2. Outside state-based units procurement from NMDC increased marginally
3. Sourcing from within state-based units decreased by 4%
India’s largest iron ore miner, NMDC supplied 319 rakes of iron ore in May’18, up slightly by 1% as against supply in Apr’18, recorded at 317 rakes. Earlier in the last week of May’18 NMDC (C.G) increased prices by INR 100-170/MT. Baila fines prices have moved up by INR 100/MT and prices of Baila lump and ROM by INR 150/MT. DR-CLO prices have increased by INR 170/MT.
C.G. based unit’s procurement decreased by 4% in May’18:- Procurement of NMDC iron ore by Chhattisgarh based units decreased to 43 rakes in May’18 as against 45 rakes in May’18 by units within the state. However, it observes that from the last few month procurements has been in the lower side as usually, CG based units procure 65-70 rakes of iron ore every month from NMDC, Chhattisgarh.
Procurement by outside C.G based units increased only a limited extent: The procurement by outside units of C.G has increased by 1% M-o-M to 276 rakes in May’18 as against 272 rakes in Apr’18.
RINL has decreased iron ore sourcing from NMDC Bailadila mines by 7% M-o-M in May’18 to 174 rakes as compared to 187 rakes in Apr’18. JSW Steel (Dolvi) sourcing from NMDC increased by 4% in May’18 to 51 rakes as against 49 rakes in Apr’18.
KIOCL has increased its sourcing sharply by more than twice to 45 iron ore rakes from NMDC in May’18, against 20 rakes in Apr’18.
Southern India based Pushpit Steels procured 2 rakes of iron ore in May from NMDC (C.G.)
Movement for Exports Continues to Nil from the last Month:
No movement for iron ore exports reported in May’18 as it was nil last month also.
Iron ore exported by NMDC under MMTC under Long-Term Agreement was subject to an export duty of 10% which expired on 31 Mar’18. There has been no update regarding duty structure till date.
NMDC (C.G.) Iron ore rake movement: May’18 Vs April’18
| Seller | Buyer | May-18 | Apr-18 |
| NMDC(CG) to Chhattisgarh based Plant | Ghankun Steel Pvt. Ltd. | 3 | 3 |
| Shivalay Ispat & Power Pvt Ltd | 3 | 2 | |
| Grace Industries | 3 | 1 | |
| API Ispat & Power | 3 | 2 | |
| Sunil Sponge | 3 | – | |
| Devi Iron & Power Ltd | 3 | 6 | |
| Monnet Ispat & Energy Ltd | 3 | – | |
| Gopal Sponge | 2 | 2 | |
| Vaswani Industries | 2 | 3 | |
| Vandana Global Ltd | 2 | 1 | |
| Aarti Sponge & Power Ltd | 2 | 1 | |
| Vraj Metaliks Private Limited | 2 | – | |
| Shri Nakoda Ispat Ltd | 1 | 2 | |
| Niros Ispat | 1 | – | |
| Bhagwati Power Steel | 1 | 2 | |
| Nutan Ispat & Power Ltd. | 1 | 3 | |
| Shri Bajrang Power & Ispat | 1 | – | |
| Lloyds Steel | 1 | 2 | |
| SKS Ispat | 1 | 3 | |
| Mahendra Sponge & Power Ltd | 1 | 1 | |
| Gopani Iron & Power Ltd. | 1 | 2 | |
| G.R.Sponge & Power Ltd. | 1 | – | |
| Shree Shyam Sponge & Power Ltd | 1 | – | |
| Real Ispat & Power Ltd | 1 | 1 | |
| Mahendra Sponge & Power Ltd (Unit II) | – | 1 | |
| Drolia Electrosteel Ltd | – | 1 | |
| Viraj Metaliks Private Limited | – | 2 | |
| Shree Sita Ispat & Power Pvt. Ltd. | – | 1 | |
| Hi-Tech Power Steel | – | 1 | |
| Shilpy Steels Pvt Ltd | – | 2 | |
| Total | 43 | 45 | |
| NMDC(C.G.) to Other State | Rashtriya Ispat Nigam Ltd | 174 | 187 |
| JSW Steel, Dolvi | 51 | 49 | |
| Kudremukh Iron Ore Company Ltd | 45 | 20 | |
| Pushpit Steels Pvt. Ltd | 2 | 1 | |
| Noble Tech Industries Ltd. | 2 | 3 | |
| Steel Exchange India Ltd | 1 | 1 | |
| Maha Maya | 1 | 1 | |
| ElectroSteel Steels Ltd | – | 10 | |
| Total | 276 | 272 | |
| Export | – | – | |
| Grand Total | 319 | 317 | |
Each rake carries approximately 3,850 MT iron ore
Source: SteelMint Research, Railways
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