Chhattisgarh based sponge manufacturers prefer Odisha pellet over NMDC’s lump owing to higher prices.
NMDC, India’s largest iron ore producer, has witnessed a significant fall in Iron ore dispatches from its Chhattisgarh mines last month. According to SteelMint data, total 0.9 MnT iron ore was dispatched from NMDC Chhattisgarh mines in Aug’15..
Dispatches in Aug’15 have dropped by 22% against July’15. In Aug’15, NMDC dispatched 69,300 MT within state and 843,150 MT outside states. It was 0.20 MnT within state and 0.92 MnT to other states in the month of July’15.
Iron ore procurement by major steelmakers like Vizag Steel reduced by 2% in August, which is around 523,600 MT against 512,050 MT in July’15. JSW Steel, Dolvi also purchased less iron ore in August. Only, 273,350 MT iron ore was procured.
In August 2015, major iron ore buyers from NMDC Chhattisgarh were Jayaswal Neco (30,800 MT), Sarda Energy & Minerals (15,400 MT), Godavari Power & Ispat (11,550 MT), Grace industries (7,700 MT) and Sri Bajrang Power (3,850 MT).
C.G. based sponge units shift interest from NMDC lump to Odisha pellet
Last month, Chhattisgarh based sponge manufacturers showed very less buying interest in NMDC material. Only 69,300 MT iron ore had been dispatched by NMDC within state. The material had been procured by pellet manufacturers only.
Major reasons: Last month, NMDC rolled over 10-40 DR-CLO (Fe 67%) prices and offered the material at INR 3,840/MT due to sufficient bookings from Chhattisgarh mines for August deliveries. This made Chhattisgarh based sponge manufacturer shift their interest to Odisha pellets, since it was available at much cheaper prices compared to NMDC’s DR CLO. In addition to this, iron ore dispatches from Odisha also increased towards C.G. based sponge units as major Odisha merchant miners had cut prices for lump upto INR 400/MT.
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