India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has witnessed significant reduction in off take from state based units last month.
NMDC in total supplied 340 rakes of iron ore from its Bailadila mines in Chhattisgarh last month against 358 rakes in Mar’17. Thus NMDC’s iron ore supply from Bailadila mines has gone down by 5% M-o-M in Apr’17. In the month of Apr’17, NMDC had kept iron ore prices unchanged.
C.G. based sponge units sharply reduced iron ore sourcing in Apr’17 – C.G. based sponge iron units sourced 19 rakes from NMDC (C.G.) in Apr’17 compared to 67 rakes in Mar’17. Trade activities in Indian sponge market was good towards the beginning of Apr’17, however later prices plunged over less inquiries.
Outside C.G. based units raised iron ore sourcing by 27% – Iron ore procurement of outside C.G. based units increased 27% M-o-M to 276 rakes in Apr’17. RINL (Vizag Steel) sourced 163 iron ore rakes in Apr’17 against 126 rakes in Mar’17. JSW Steel’s iron ore procurement from NMDC increased around three-fold from 21 rakes in Mar’17 to 66 rakes in Apr’17.
Southern India based pellet maker – KIOCL sourced only 18 rakes from NMDC (C.G.) last month compared to 38 rakes in Apr’17, down 53% M-o-M.
Movement for exports fall 39% M-o-M – NMDC’s iron ore movement for exports fell sharply in Apr’17. The miner loaded 45 rakes for export in Apr’17 compared to 74 rakes in Mar’17. Low parity in exports over sharp decline in global prices resulted in less exports.
NMDC iron ore rake movement : Apr’17 vs Mar’17
|
Seller |
Buyer | Apr’17 |
Mar’17 |
| NMDC(CG) to Chhattisgarh based Plant | Vandana Global Ltd | 5 | 2 |
| Aarti Sponge & Power Ltd | 3 | – | |
| SKS Ispat | 2 | 9 | |
| Hi Tech Power Steel | 2 | 1 | |
| Shilpy Steels Pvt Ltd | 1 | 1 | |
| Sri Hare Krishna Sponge Iron Ltd | 1 | – | |
| Shri Nakoda Ispat Ltd | 1 | 3 | |
| Gagan Resources Pvt Ltd | 1 | – | |
| Sunil Sponge | 1 | 3 | |
| Gopani Iron & Power Ltd. | 1 | 4 | |
| Raipur Power & Steel | 1 | 1 | |
| Bhagwati Power Steel | – | 3 | |
| Nutan Ispat & Power Ltd. | – | 2 | |
| API Ispat & Power | – | 8 | |
| Drolia Electrosteel Ltd | – | 3 | |
| Ghankun Steel Pvt. Ltd. | – | 1 | |
| Rashmi Sponge Iron & Power Ltd | – | 2 | |
| Grace Industries | – | 11 | |
| Real Ispat & Power Ltd | – | 2 | |
| Devi Iron & Power Ltd | – | 4 | |
| Gopal Sponge | – | 2 | |
| Shivalay Ispat & Power Pvt Ltd | – | 5 | |
| Total | 19 | 67 | |
| NMDC(C.G.) to Other State | Rastriya Ispat Nigam Ltd | 163 | 126 |
| JSW Steel, Dolvi | 66 | 21 | |
| Kudremukh Iron Ore Company Ltd | 18 | 38 | |
| Public | 11 | 15 | |
| Steel Exchange India Ltd | 7 | 4 | |
| Sunflag Iron & Steel Company Ltd | 4 | 4 | |
| NMDC | 3 | 3 | |
| Gallant Metal Ltd. | 2 | – | |
| Maha Maya | 2 | 5 | |
| Jai Balaji Industries Ltd | – | 1 | |
| Total | 276 | 217 | |
| Export | 45 | 74 | |
| Grand Total | 340 | 358 | |
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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