Despite Iron ore supply crunch from odisha, NMDC’s Iron ore movement to Chhattisgarh based Sponge manufacturers have declined by 18% on falling demand. Earlier in the month of June, manufacturers have raised their purchases by 35%. Sponge manufacturers have mentioned that they reduced their purchases from NMDC because of Pellets availability in the local market.
NMDC’s Iron Ore Supply through Rakes
|
Chhattisgarh based Plants |
May’14 |
Jun’14 |
Jul’14 |
Total |
|
Monnet Ispat & Energy |
7 |
10 |
8 |
25 |
|
Sarda Energy & Minerals |
4 |
8 |
11 |
23 |
|
SKS Ispat |
4 |
11 |
8 |
23 |
|
Vandana Global |
3 |
8 |
6 |
17 |
|
Shri Bajrang Power & Ispat |
2 |
6 |
7 |
15 |
|
Topworth Steel & Power |
3 |
– |
5 |
8 |
|
Mahendra Sponge & Power |
4 |
2 |
2 |
8 |
|
Drolia Electrosteel |
3 |
2 |
3 |
8 |
|
Real Ispat & Power |
1 |
4 |
2 |
7 |
|
Godawari Power & Ispat |
3 |
3 |
– |
6 |
|
Hi Tech Power Steel |
– |
3 |
2 |
5 |
|
Crest Steel & Power |
1 |
2 |
2 |
5 |
|
Ghankun Steel |
2 |
2 |
– |
4 |
|
Topworth Steel & Power & Heg |
1 |
3 |
– |
4 |
|
Shivalay Ispat & Power |
– |
– |
4 |
4 |
|
Vaswani Industries |
3 |
– |
– |
3 |
|
Lloyds Steel |
– |
2 |
1 |
3 |
|
Gopani Iron & Power |
– |
1 |
1 |
2 |
|
Jayaswal Neco Industries |
– |
1 |
1 |
2 |
|
Shri Nakoda Ispat |
1 |
– |
1 |
2 |
|
Niros Ispat |
1 |
1 |
– |
2 |
|
Sri Hare Krishna Sponge Iron |
– |
1 |
– |
1 |
|
Rashmi sponge Iron & Power |
1 |
– |
– |
1 |
|
API Ispat & Power |
– |
– |
1 |
1 |
|
Navbharat Fuses |
1 |
– |
– |
1 |
|
Public* |
18 |
15 |
5 |
38 |
|
Total |
63 |
85 |
70 |
218 |
* Consignee name not disclosed
One rake carries around 3,850 MT of Iron ore
Source: SteelMint, Railways
“It is tough to source Iron ore from Odisha, as most of the merchant miners are non- operational and the operational are overbooked. We either have to rely on Iron pellets or ore from NMDC. Net landed cost of DR CLO from NMDC’s Chhattisgarh mines will cost us around INR 7,700-7,800/MT, Odisha will cost us INR 7,800-7,900/MT and Pellets will cost us INR 8,400/MT,” said a Sponge iron manufacturer based in Raipur.
NMDC hold on Iron Ore Prices for August
NMDC, India’s largest Iron ore miner, hold on Iron ore prices for August deliveries. In the first 4 months of the current fiscal, NMDC had produced 9.88 MnT of Iron ore.
Chhattisgarh is one of the largest Sponge producing states in the country with an installed capacity of 9 MnT, which includes over 70 units.
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