India’s leading iron ore producer NMDC is believed to be facing certain supply issues at its five mines in Chhattisgarh. The PSU miner has postponed auctions in the state in Sept’20. In the latest round, the auctions scheduled to be held on 29th Sept’20 for 80,000 t of iron ore were called off.
Inclement weather conditions – persistent rainfall and fog – are believed to be hampering NMDC’s production volumes. Company sources told SteelMint that adverse weather conditions coupled with rising coronavirus cases has taken a toll on mining volumes. Operations have been curtailed to two from three shifts under normal circumstances.
In such a situation, it is believed, the state-run iron ore major had to call off the auctions to ensure steady supplies to MoU buyers.
Half-yearly data recently published by NMDC show a 9% fall in ore production in the Apr-Sept’20 period to 12.24 mn t compared to the corresponding period last year. Sales for the period have slumped 11% y-o-y.
As per rake movement data maintained with SteelMint, NMDC supplied 1.06 mn t from its Chhattisgarh mines in Sept’20. However, while despatches to state-based steel units have inched up to 0.17 mn t from 0.14 mn t in Aug’20, procurement by units based out of Chhattisgarh have climbed 52% to about 0.76 mn t. The major buyers based out of CG include PSU steel-maker RINL, KIOCL and JSW Steel. Likewise, ore exports surged by 31% in Sept’20 over the preceding month.
~ By Nirmalya Deb
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