1. Iron ore sourcing of Chhattisgarh based sponge units up by 64% M-o-M
2. KIOCL doubles its iron ore procurement from NMDC (C.G.) in Sept’16
3. JSW Steel sourced 33 rakes for its Dolvi plant in Sept’16
4. RINL’s iron ore sourcing up by 31% M-o-M
NMDC supplied 314 rakes of iron ore from its Bailadila mines in Chhattisgarh last month compared to 268 rakes in Aug’16. Thus, 17% M-o-M rise can be noticed in its iron ore supply. It is to be noted that NMDC had rolled over iron ore prices in the month of Sept’16.
Chhattisgarh based sponge iron units raised iron ore procurement significantly by 64% last month and procured 64 rakes from NMDC (C.G.) in Sept’16 compared to 39 rakes in Aug’16. Uptrend in sponge iron prices lead to improved iron ore procurement by sponge manufacturers. Sponge iron prices in central India rose sharply up to INR 2,000/MT M-o-M in Sept’16.
Sourcing of outside Chhattisgarh based units from NMDC also moved up in Sept’16. Pellet exporter – KIOCL doubled its procurement from 11 rakes in Aug’16 to 22 rakes in Sept’16. The pellet maker is actively participating in exports, for which it has raised its iron ore sourcing.
Vizag Steel’s iron ore sourcing from NMDC (C.G.) moved up by 31% M-o-M. The steel maker sourced 117 rakes in Sept’16 against 89 rakes in Aug’16. Following increase in raw material cost (coking coal), the steel maker hiked its rebar prices by about INR 2,200/MT in four tranches since beginning of Sept’16.
JSW Steel procured 33 rakes from NMDC (C.G.) in Sept’16 against 51 rakes in Aug’16. Gallant Metal, which had participated in NMDC (C.G.) auction in Aug’16 continued with its sourcing in Sept’16.
Rake movement for export remained stable on monthly premises and the miner loaded 47 rakes in Sept’16 against 49 rakes in Aug’16.
NMDC (C.G.) iron ore rake movement : Sept’16 vs Aug’16
|
Movement |
Sept’16 |
Aug’16 |
|
| NMDC(CG) to Chhattisgarh based Plant | SKS Ispat | 7 | 4 |
| API Ispat & Power | 5 | 3 | |
| Raipur Power & Steel | 5 | 1 | |
| Vandana Global Ltd | 5 | 2 | |
| Ghankun Steel Pvt. Ltd. | 5 | 2 | |
| Grace Industries | 4 | – | |
| Mahendra Sponge & Power Ltd | 4 | 2 | |
| Rashmi Sponge Iron & Power Ltd | 3 | 1 | |
| Shri Nakoda Ispat Ltd | 3 | 2 | |
| Shivalay Ispat & Power Pvt Ltd | 2 | 2 | |
| Real Ispat & Power Ltd | 2 | 1 | |
| Drolia Electrosteel Ltd | 2 | 2 | |
| Public | 2 | – | |
| N R Sponge | 2 | 1 | |
| Vaswani Industries | 2 | 2 | |
| Niros Ispat | 2 | 2 | |
| Monnet Ispat & Energy Ltd | 2 | 1 | |
| Devi Iron & Power Ltd | 1 | – | |
| Agrawal Sponge Ltd. | 1 | 1 | |
| Aarti Sponge & Power Ltd | 1 | 2 | |
| Crest Steel & Power Ltd. | 1 | – | |
| G.R.Sponge & Power Ltd. | 1 | – | |
| Nutan Ispat & Power Ltd. | 1 | 1 | |
| Shilpy Steels Pvt Ltd | 1 | – | |
| Bhagwati Power Steel | – | 2 | |
| Gopal Sponge | – | 2 | |
| Hi Tech Power Steel | – | 1 | |
| Gagan Resources Pvt Ltd | – | 1 | |
| Sri Hare Krishna Sponge Iron Ltd | – | 1 | |
| Total | 64 | 39 | |
| NMDC to Other State | Rastriya Ispat Nigam Ltd | 117 | 89 |
| JSW Steel, Dolvi | 33 | 49 | |
| Kudremukh Iron Ore Company Ltd | 22 | 11 | |
| Public | 10 | 14 | |
| Sunflag Iron & Steel Company Ltd | 5 | 2 | |
| Gallant Ispat | 4 | – | |
| Steel Exchange India Ltd | 4 | 5 | |
| Maha Maya | 3 | 4 | |
| NMDC | 2 | 3 | |
| Mahamaya Steel Intustries | 2 | – | |
| Gopani Iron & Power Ltd. | 1 | – | |
| Godawari Power & Ispat Ltd. | – | 1 | |
| JSW Steel, Vijayanagar | – | 2 | |
| Total | 203 | 180 | |
| Export | 47 | 49 | |
| Grand Total | 314 | 268 | |
Each rake carries approximately 3,850 MT iron ore
Excluding Essar Steel’s movement through slurry pipeline
Source: SteelMint Research, Railways
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