1. Iron ore sourcing of C.G. based sponge units plunge 47% M-o-M
2. Movement for exports dropped to half against Jan’17
3. Outside Chhattisgarh based units lessened iron ore sourcing by 14% in Feb’17
NMDC supplied 356 rakes of iron ore from its Bailadila mines in Chhattisgarh last month against 476 rakes in Jan’17. Thus NMDC’s iron ore supply from Bailadila mines has fallen by 25% M-o-M in Feb’17. In the month of Feb’17, NMDC hiked iron ore prices up to INR 185/MT M-o-M.
C.G. based sponge iron units procurement plunge 47% M-o-M – C.G. based sponge iron units sourced 34 rakes from NMDC (C.G.) in Feb’17 compared to 64 rakes in Jan’17. Sponge manufacturers were seen preferring pellets over iron ore. Also some trade participants highlighted that railway has recently revised NAL’s capacity from 63 MT to 78 MT per wagon. It will increase per rake quantity from 3,850 MT earlier to 4,500 MT (approx).
Movement for exports dropped to half in Feb’17 – NMDC’s iron ore movement for exports fell sharply in Feb’17. The miner loaded only 45 rakes for export in Feb’17 compared to 90 rakes in Jan’17.
Outside C.G. based units reduce iron ore sourcing in Feb’17 – Iron ore procurement of outside C.G. based units fell 14% M-o-M to 277 rakes in Feb’17. RINL (Vizag Steel) sourced 131 iron ore rakes in Feb’17 against 195 rakes in Jan’17. Iron ore procurement of JSW Steel, Dolvi reduced 16% M-o-M to 48 rakes in Feb’17.
Southern India based pellet maker – KIOCL sourced 53 rakes from NMDC (C.G.) last month compared to 49 rakes in Jan’17, up 8% M-o-M. The pellet maker was seen sourcing iron ore from Odisha based merchant miner – Kaypee Enterprises in Feb’17.
NMDC rake movement: Feb’17 vs Jan’17
|
Seller |
Buyer | Feb-17 |
Jan-17 |
| NMDC(CG) to Chhattisgarh based Plant | SKS Ispat | 6 | 10 |
| Rashmi Sponge Iron & Power Ltd | 3 | 2 | |
| Shivalay Ispat & Power Pvt Ltd | 3 | 3 | |
| Aarti Sponge & Power Ltd | 2 | 2 | |
| Bhagwati Power Steel | 2 | 1 | |
| Nutan Ispat & Power Ltd. | 2 | 3 | |
| Drolia Electrosteel Ltd | 2 | 3 | |
| Real Ispat & Power Ltd | 2 | 2 | |
| Ghankun Steel Pvt. Ltd. | 2 | 4 | |
| Gopal Sponge | 2 | 2 | |
| Shri Nakoda Ispat Ltd | 2 | 2 | |
| API Ispat & Power | 1 | 4 | |
| Shilpy Steels Pvt Ltd | 1 | 3 | |
| Vandana Global Ltd | 1 | – | |
| Gagan Resources Pvt Ltd | 1 | 1 | |
| Grace Industries | 1 | 3 | |
| Hi Tech Power Steel | 1 | 1 | |
| Devi Iron & Power Ltd | – | 4 | |
| Sri Hare Krishna Sponge Iron Ltd | – | 2 | |
| Agrawal Sponge Ltd. | – | 1 | |
| Raipur Power & Steel | – | 3 | |
| Shree Sita Ispat & Power Pvt. Ltd. | – | 1 | |
| Vaswani Industries | – | 2 | |
| Mahendra Sponge & Power Ltd | – | 2 | |
| Niros Ispat | – | 3 | |
| Total | 34 | 64 | |
| NMDC(C.G.) to Other State | Rastriya Ispat Nigam Ltd | 131 | 195 |
| Kudremukh Iron Ore Company Ltd | 53 | 49 | |
| JSW Steel, Dolvi | 48 | 57 | |
| Public | 24 | 7 | |
| Sunflag Iron & Steel Company Ltd | 5 | 3 | |
| Maha Maya | 4 | 3 | |
| Steel Exchange India Ltd | 2 | 4 | |
| NMDC | 1 | 1 | |
| Gallant Ispat | – | 3 | |
| Total | 277 | 322 | |
| Export | 45 | 90 | |
| Grand Total | 356 | 476 | |
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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