India’s largest iron ore miner – NMDC supplied 157 rakes of iron ore in Aug’18, down by 24% on monthly basis, against 206 rakes in July’18. Monsoons hampered iron ore production and dispatches.
In beginning of July, NMDC hiked iron ore prices by INR 140-180/MT from Chhattisgarh mines. However in latest price revision made it announced price revision and increased prices by INR 140-170/MT with effect from 22nd Aug 2018. The miner increased Baila fines and lumps prices by INR 150/MT and prices of ROM by INR 140/MT and DR-CLO prices by INR 170/MT.
Procurement by C.G. based unit’s down 47% in Aug’18:-
Procurement of NMDC iron ore by Chhattisgarh based units declined to 18 rakes in Aug’18 as against 34 rakes in July’18 by units within the state. However, from last few month procurements has been towards the lower side as CG based units usually procure 65-70 rakes of iron ore every month from NMDC, Chhattisgarh. Besides, monsoons have also affected the production along with movement of rakes.
Procurement by units outside C.G. declined 19% on monthly basis
The procurement by units outside C.G has dropped by 19% M-o-M to 139 rakes in Aug’18 as against 172 rakes in July’18.
JSW Steel (Dolvi) sourcing from NMDC decreased sharply by 33% M-o-M to 12 rakes in Aug’18 as against 18 rakes in July’18.
RINL depicted decline in procurement from NMDC Bailadila mines for the fourth consecutive month by 14% in Aug’18 to 101 rakes as against being 117 rakes a month before.
KIOCL has also decreased its sourcing sharply by 26% to 17 rakes in Aug’18 compared to 23 iron ore rakes from NMDC in July’18.
Iron ore Export Duty Unchanged for NMDC-:
On 11th Jul’18, Indian government kept export duty unchanged at 10% for iron ore exported from National Mineral Development Corporation (NMDC) to Japanese and Korean mills under Long Term Trade Agreement (LTA).
However, no movement for iron ore exports reported in Aug’18. NMDC iron ore exports have depicted nil since Apr’18.
NMDC (C.G.) Iron ore rake movement: Aug’18 Vs. July’18
| Seller | Buyer | Aug-18 | Jul-18 |
| NMDC (CG) to Chhattisgarh based Plant | SKS Ispat | 3 | 1 |
| Vraj Metaliks Private Limited | 2 | 1 | |
| Shivalay Ispat & Power Pvt Ltd | 2 | 1 | |
| Real Ispat & Power Ltd | 1 | 1 | |
| Hi Tech Power Steel | 1 | – | |
| Nutan Ispat & Power Ltd. | 1 | 2 | |
| Jindal Steel & Power Ltd | 1 | 7 | |
| Shilpy Steels Pvt Ltd | 1 | – | |
| Lloyds Metals & Energy Ltd | 1 | – | |
| API Ispat & Power | 1 | 3 | |
| Shri Bajrang Power & Ispat | 1 | – | |
| Aarti Sponge & Power Ltd | 1 | 1 | |
| Monnet Ispat & Energy Ltd | 1 | 1 | |
| Mahendra Sponge & Power Ltd (Unit II) | 1 | – | |
| Lloyds Steel | – | 2 | |
| Gopal Sponge | – | 1 | |
| Ghankun Steel Pvt. Ltd. | – | 1 | |
| Gopani Iron & Power Ltd. | – | 3 | |
| Shree Shyam Sponge & Power Ltd | – | 1 | |
| Rama Udyog Pvt Ltd | – | 1 | |
| Shri Nakoda Ispat Ltd | – | 1 | |
| Agrawal Structure Mills Pvt Ltd | – | 1 | |
| Vandana Global Ltd | – | 2 | |
| Bhagwati Power Steel | – | 1 | |
| Niros Ispat | – | 1 | |
| Devi Iron & Power Ltd | – | 1 | |
| Total | 18 | 34 | |
| NMDC (C.G.) to Other State | Rastriya Ispat Nigam Ltd | 101 | 117 |
| Kudremukh Iron Ore Company Ltd | 17 | 23 | |
| JSW Steel, Dolvi | 12 | 18 | |
| Jindal Steel & Power Ltd | 4 | 3 | |
| Steel Exchange India Ltd | 3 | 4 | |
| Sunflag Iron & Steel Company Ltd | 1 | – | |
| Noble Tech Industries Ltd. | 1 | 1 | |
| ElectroSteel Steels Ltd | – | 5 | |
| Pushpit Steels Pvt. Ltd | – | 1 | |
| Total | 139 | 172 | |
| Export | – | – | |
| Grand Total | 157 | 206 | |
Each rake carries approximately 3,850 MT iron ore
Source: SteelMint Research, Railways
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