NMDC’s Iron ore sales may take a major hit in the month of February, owing to declining Iron ore prices in Odisha and rising imports by major Indian steelmakers. The company has reported a sale of 2.54 MnT in the month of January.In addition, the steelmaker has cut prices by up to 11% for February deliveries.
Iron Ore Movement from Chhattisgarh
According to data managed by SteelMint, it is observed that Iron ore dispatches from Chhattisgarh mines in the month of February (till 20Feb’15) have touched around 0.63 MnT against 1.46 MnT in January, 2015.
Low Iron Ore Sales in Karnataka E-auction
Iron ore sales were reported low in Karantaka’s e-auction. Total sales stood roughly at 0.4 MnT (till 18 Feb’15) against 1.1 MnT in Jan’15. With lesser quantity coming for auction this month, total sales from Karanataka will certainly reduce from previous month.
Tata Steel’s Mine Operations resume in Odisha/Jharkhand
There was no movement recorded by Tata Steel from NMDC in the month of February due to resumption of mines in Odisha and Jharkhand. Tata Steel dispatched about 132,000 MT in January, which remain nil in February (till 20 Feb’15).
Chhattisgarh Manufacturers prefer Odisha Mines over NMDC
Chhattisgarh based manufacturers prefer Iron ore from Odisha over NMDC due to lower prices. On one hand, where Odisha based miners have reduced prices by upto INR 1,300/MT, on the other, NMDC has cut prices by only INR 450/MT.
“Landed cost of Iron ore fines from NMDC is costlier by INR 700-800/MT. We have switched our purchases to Odisha,” mentioned a Pellet manufacturer in the state.
NMDC’s Export to fall in February
NMDC’s exports have also been recorded low in February. Total 24 rakes of about 93,000 MT have been dispatched for export in February against 86 rakes of about 331,000 MT in January.
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NMDC Rake Supply Movement |
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| Movement | Jan-15 | Feb-15* | |
| NMDC(CG) to Chhattisgarh Based Plants | Monnet Ispat & Energy | 3 | 4 |
| SKS Ispat | 10 | 4 | |
| Shivalay Ispat & Power | 3 | 2 | |
| Topworth Steel & Power | 4 | 2 | |
| API Ispat & Power | 3 | 2 | |
| Hi Tech Power Steel | 3 | 2 | |
| Vaswani Industries | 2 | 2 | |
| Gopal Sponge | 2 | 1 | |
| Sunil Sponge | – | 1 | |
| Agrawal Sponge | 1 | 1 | |
| Bhagwati Power Steel | 2 | 1 | |
| Shilpy Steels | 2 | 1 | |
| Ghankun Steel | 3 | 1 | |
| Shri Nakoda Ispat | 1 | 1 | |
| APIS | – | 1 | |
| Sri Hare Krishna Sponge Iron | – | 1 | |
| Rashmi sponge Iron & Power | 2 | 1 | |
| Mahendra Sponge & Power | 3 | 1 | |
| Real Ispat & Power | 2 | 1 | |
| Niros Ispat | 4 | 1 | |
| Aarti Sponge & Power | 2 | 1 | |
| N R Sponge | 2 | – | |
| Devi Iron & Power | 2 | – | |
| Drolia Electrosteel | 2 | – | |
| G.R.Spone & Power | 1 | – | |
| Sarda Energy & Minerals | 4 | – | |
| Singhal Energey | 1 | – | |
| Vandana Global | 2 | – | |
| Singhal Enterprises | 4 | – | |
| Shree Shyam Ispat india | 1 | – | |
| Gagan Resources | 1 | – | |
| Public | 2 | – | |
| Total | 74 | 32 | |
| NMDC(CG) to Others | Rastriya Ispat Nigam | 167 | 99 |
| Tata steel | 34 | – | |
| ElectroSteel Steels | 3 | – | |
| Sunflag Iron & Steel Company | 4 | – | |
| B.S.Ispat | 1 | – | |
| Jindal Steel & Power | 7 | 7 | |
| Maha Maya | 3 | 1 | |
| Essar Steel | 1 | – | |
| Total | 220 | 107 | |
| Export | 86 | 24 | |
| Grand Total | 380 | 163* | |
*Data recorded till 20 Feb’15
Each rake carries about 3,850 MT Iron ore
Source: Railways, MSTC, Govt of Karnataka, SteelMint
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