India: NMDC Iron Ore Sales Picked Up 85%, Production Up by 27% in May’20

NMDC total iron ore sales for the month of May’20 recorded at 2.55 MnT, a significant rise of 85% as against 1.38 MnT in Apr’20. Out of the total, 73% of total sales contributed by Chhattisgarh at 1.85 MnT, up 71% M-o-M. The miner slashed iron ore fines and lump prices by INR 400/MT and DR CLO by INR 470/MT for the month of May’20, marking the 2nd significant consecutive price cut after Apr’20. In addition to it, amid nationwide lockdown, most of the steel mills in Chhattisgarh remained closed for the month of Apr’20 which resumed production in May’20, thus in turn increasing iron ore sales by the miner.

The total sales from Karnataka mines stood at 0.7 MnT, up against 0.3 MnT in Apr ’20. The miner towards mid of the month had decreased its floor prices by around INR 300-400/MT in both lumps and fines from Karnataka mines.

However, on a yearly basis, the sales fell by 24% as compared to 3.37 MnT in May’19. This is due to the adverse impact of the pandemic causing labour shortage and logistics issues.

NMDC Iron Ore production up 27% in May’20

NMDC iron ore production for the second month of the fiscal FY21 (May’20) was reported at 2.29 MnT. The output increased 27% on a monthly basis compared to 1.8 MnT in Apr’20. However, on a yearly basis output fell 25% as against 3.04 MnT in May’19.

In May’20, NMDC C.G contributed a major chunk of production contributing about 71% at 1.63 MnT (up 24% M-o-M basis) and remaining 0.66 MnT produced by Karnataka mines, up 35% on a monthly basis.

Source-: BSE filings, SteelMint Research
Qty in MnT