India’s largest iron ore producer – NMDC recorded iron ore production of 1.62 mn t in Aug’20. The output fell 26% on a monthly basis compared to 2.19 mn t in July’20. Sources highlighted that heavy rains resulted in lower iron ore production. However, on a yearly basis output increased 15% compared to 1.41 mn t in Aug’19.
In Aug’20, NMDC C.G contributed a share of about 62% at 1.01 mn t (down 35% m-o-m basis) and remaining 0.61 mn t produced by Karnataka mines, down by 3% m-o-m.
As per the recent update received, after twenty-two months of waiting, NMDC will be able to resume mining at Donimalai in Karnataka. This, however, comes at a cost, to begin with, a royalty of 37.5% against the usual 15%.
Sales fall by 30% in Aug’20
NMDC total iron ore sales for the month of Aug’20 recorded at 1.79 mn t, down 30% as against 2.57 mn t in July’20. The sales dropped amid rise in prices. NMDC increased iron ore prices twice in the month of Aug’20. Prices for lump and fines moved up by INR 300-350/t towards mid Aug’20. Prior to it, the miner had raised prices for lump and fines by INR 200/t each on 31 July.
On a yearly basis, the sales picked up by 20% as compared to 1.49 mn t in Aug’19.
Out of the total sales in Aug’20, 71% contributed by Chhattisgarh at 1.27 mn t, down 33% on a monthly basis. The total sales from Karnataka mines stood at 0.52 mn t, down 22% against 0.67 mn t in July ’20.
NMDC iron ore production and sales:
Source-: BSE filings, SteelMint Research
Qty in mn t
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