Iron ore dispatches from NMDC, India’s largest iron ore producer, has witnessed a significant drop in Sept’15. RINL, a major buyer of iron ore from NMDC (Chhattisgarh) also reduced its purchases i.e. 404,250 MT via 105 rakes in Sept’’15, against 523,600 MT via 136 rakes in Aug’15.
Iron ore procurement of JSW Steel, Dolvi, fell drastically by 40% M-o-M. JSW Steel loaded only 42 rakes i.e. 161,700 MT iron ore in Sept’15 against 71 rakes i.e. 273,350 MT in Aug’15.
NMDC’s iron ore production increase by 9% and sales drop by 3% Q-o-Q in Q2 FY16. Company’s production had dropped down to 14% i.e. 12.37 MnT in H1 FY16 against 14.44 MnT in H1 FY15. Also, sales dropped down to 17% in H1 FY16 against 15.84 MnT in H1 FY15. This was mainly due to low demand for steel which uses iron ore as their raw material.
NMDC (Chhattisgarh) Iron Ore Railway Movement
| Movement | Aug’15 | Sep’15 | |
| NMDC(CG) to CG based Plant | SKS Ispat | – | 7 |
| Jayaswal Neco Industries Ltd | 8 | 6 | |
| Sarda Energy & Minerals Ltd | 4 | 5 | |
| Shivalay Ispat & Power Pvt Ltd | – | 3 | |
| Shri Nakoda Ispat Ltd | – | 3 | |
| Real Ispat & Power Ltd | – | 3 | |
| Vandana Global Ltd | – | 3 | |
| Gagan Resources Pvt Ltd | – | 2 | |
| G.R.Sponge & Power Ltd. | – | 2 | |
| Hi Tech Power Steel | – | 2 | |
| API Ispat & Power | – | 2 | |
| Shilpy Steels Pvt Ltd | – | 2 | |
| Bhagwati Power Steel | – | 2 | |
| Ghankun Steel Pvt. Ltd. | – | 2 | |
| Rashmi Sponge Iron & Power Ltd | – | 2 | |
| Drolia Electrosteel Ltd | – | 2 | |
| Mahendra Sponge & Power Ltd | – | 2 | |
| Aarti Sponge & Power Ltd | – | 2 | |
| N R Sponge | – | 1 | |
| Nava Bharat Ventures | – | 1 | |
| Topworth Steel & Power Pvt Ltd | – | 1 | |
| Niros Ispat | – | 1 | |
| Vaswani Industries | – | 1 | |
| Gopal Sponge | – | 1 | |
| Agrawal Sponge Ltd. | – | 1 | |
| Monnet Ispat & Energy Ltd | – | 1 | |
| Grace Industries | 2 | – | |
| Shri Bajrang Power & Ispat | 1 | – | |
| Godawari Power & Ispat Ltd. | 3 | – | |
| Total | 18 | 60 | |
| NMDC(CG) to Other State | Rastriya Ispat Nigam Ltd | 136 | 105 |
| JSW Steel, Dolvi | 71 | 42 | |
| Tata steel | 7 | 7 | |
| Maha Maya | – | 3 | |
| Gopani Iron & Power Ltd. | – | 1 | |
| Lloyds Steel | – | 1 | |
| Sunflag Iron & Steel Company Ltd | 2 | – | |
| Grand Total | 216 | 159 | |
| Export | 0 | 0 | |
| Grand Total | 234 | 219 | |
Each rake carries approximately 3,850 MT iron ore
Excluding Essar Steel’s movement which is through slurry pipeline
Source: SteelMint, Railways
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