After a long gap of 8-9 months, KIOCL has resumed iron ore purchases from NMDC’s Bailadila mines in Chhattisgarh.
In Oct’15 (till 23 Oct’15), the pellet maker procured a total quantity of 19,250 MT iron ore fines via 5 rakes from NMDC C.G. to Vizag. Now, it is moving 16,500 MT iron ore fines from Vizag port to its Mangalore port via coastal movement. KIOCL operates a pellet plant of 3.5 MnT pa in Mangalore.
A vessel named “MV. Jag Roopa” carrying 16,500 MT iron ore from Vizag port is expected to reach on 26 Oct’15.
The company had stopped purchases from NMDC few months back due to in-feasibility of purchases from NMDC Bailadila mines.
Now, as NMDC had reduced iron ore fines prices by INR 200/MT M-o-M for October deliveries, purchases of KIOCL from NMDC C.G. mines become viable as the net landed cost for Baila fines (Fe 64%) will come around INR 3,700-3,800/MT.
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