NMDC, state run PSU surprised the Indian Iron ore market with increase in fines price by 100/MT and marginal correction in lumps price by INR 80-120/MT when global steel prices are in a negative trend.
NMDC had a good quarterly sales number as reported. JSW Steel, Dolvi plant and RINL Vizag unit have increased buying compared to last months sales.
NMDC Iron ore production & sales in FY16
| States | Production | Sales |
| Chhattisgarh | 8.59 | 8.89 |
| Karnataka | 6.5 | 6.83 |
| Total | 15.09 | 15.72 |
Figures in MnT
Source: SteelMint
However market participant considered C.G. sponge manufacturers and JSW have reacted with negative remarks to increase in NMDC price when global iron ore prices slump by 7% M-o-M.
“NMDC is government run PSU and we don’t expect them to increase price looking to sales number rather than considered the present steel price. We may not buy iron ore at present price for Dolvi unit however Vijaynagar buying remain open as we don’t have other option” stated JSW official in condition of anonymity.
“C.G. sponge manufacturers reacted strongly mentioning that its peny decrease when Odisha merchant miners decreased price by INR 300-400/MT, its not even to run at par at present iron ore prices” stated sponge manufactrer based in Raipur.
“Buying from NMDC will drop significantly this month at present price” shared many sponge manufacturers located in Raipur.
NMDC iron ore buying in last 3 months
|
NMDC Iron ore Buyers |
C.G. based plants | JSW Steel, Dolvi |
RINL |
South India Units |
| Aug’15 | 0.07 | 0.27 | 0.52 | 0.71 |
| Sept’15 | 0.23 | 0.16 | 0.40 | 0.39 |
| Oct’15 | 0.23 | 0.31 | 0.69 | 1.06 |
Qty in MnT
Excluding Essar Steel’s
Source: Railways, Karnataka DMG, SteelMint
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