1. State based units reduced iron ore sourcing further in May’17
2. 15% drop in procurement by outside Chhattisgarh based units
3. Movement for exports up 56% M-o-M
India’s largest iron ore miner – NMDC in total supplied 317 rakes from its Bailadila mines in Chhattisgarh last month against 340 rakes in Apr’17. Thus NMDC’s iron ore supply from Bailadila mines has gone down by 7% M-o-M in May’17. In the month of May’17, NMDC had kept iron ore prices unchanged.
C.G. based sponge units sharply reduced iron ore sourcing in May’17 – C.G. based sponge iron units sourced 12 rakes from NMDC (C.G.) in May’17 compared to 19 rakes in Apr’17. Notably C.G. based units procure 70 rakes on an average in a month from NMDC. Sponge prices declined sharply by around INR 1,500-2,000/MT in May’17 amid selling pressure and dull trade activties.
Outside C.G. based units reduced iron ore sourcing by 15% – Iron ore procurement of outside C.G. based units decreased 15% M-o-M to 235 rakes in May’17 against 276 rakes in Apr’17. RINL (Vizag Steel) sourced 147 iron ore rakes in May’17 against 163 rakes in Apr’17. JSW Steel’s iron ore procurement from NMDC dropped from 66 rakes in Apr’17 to 51 rakes in May’17.
Southern India based pellet maker – KIOCL sourced 23 rakes from NMDC (C.G.) last month compared to 18 rakes in Apr’17.
Movement for exports increased in May’17 – NMDC loaded 70 rakes for export in May’17 compared to 45 rakes in Apr’17.
NMDC iron ore rake movement : May’17 vs Apr’17
|
Seller |
Buyer | May’17 |
Apr’17 |
| NMDC(CG) to Chhattisgarh based Plant | Shri Nakoda Ispat Ltd | 3 | 1 |
| SKS Ispat | 2 | 2 | |
| Aarti Sponge & Power Ltd | 1 | 3 | |
| API Ispat & Power | 1 | – | |
| Bhagwati Power Steel | 1 | – | |
| Gopal Sponge | 1 | – | |
| Raipur Power & Steel | 1 | 1 | |
| Rashmi Sponge Iron & Power Ltd | 1 | – | |
| Shivalay Ispat & Power Pvt Ltd | 1 | – | |
| Gagan Resources Pvt Ltd | – | 1 | |
| Gopani Iron & Power Ltd. | – | 1 | |
| Hi Tech Power Steel | – | 2 | |
| Shilpy Steels Pvt Ltd | – | 1 | |
| Sri Hare Krishna Sponge Iron Ltd | – | 1 | |
| Sunil Sponge | – | 1 | |
| Vandana Global Ltd | – | 5 | |
| Total | 12 | 19 | |
| NMDC(C.G.) to Other State | Rastriya Ispat Nigam Ltd | 147 | 163 |
| JSW Steel, Dolvi | 51 | 66 | |
| Kudremukh Iron Ore Company Ltd | 23 | 18 | |
| Public | 7 | 11 | |
| Maha Maya | 4 | 2 | |
| SMC Power Generation | 1 | – | |
| Steel Exchange India Ltd | 1 | 7 | |
| Sunflag Iron & Steel Company Ltd | 1 | 4 | |
| Gallant Metal Ltd. | – | 2 | |
| NMDC | – | 3 | |
| Total | 235 | 276 | |
| Export | 70 | 45 | |
| Grand Total | 317 | 340 | |
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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