NMDC supplied 273 rakes of iron ore from its Chhattisgarh mines in Apr’16 compared to 280 rakes in Mar’16.
Post NMDC iron ore price hike by INR 140-270/MT in Apr’16, Chhattisgarh based plants reduced their procurement from NMDC Bailadila mines and preferred to go for Odisha iron ore. In Apr’16, Chhattisgarh based units procured only 38 rakes of iron ore from NMDC (C.G.) against 75 rakes in Mar’16. Thus, NMDC’s supply to Chhattisgarh based units fell by 50% in Apr’16.
However sourcing from outside state based units remained mostly stable. Vizag Steel procured 113 rakes in Apr’16 which is similar to its procurement in Mar’16. Shift in iron ore sourcing pattern was also noticed in JSW Steel’s Dolvi which raised its purchases from Odisha in Apr’16 over reduced viability post increase in NMDC’s iron ore prices. While, the steel maker sourced only 41 rakes from NMDC (C.G.) it procured 105 rakes from Odisha in Apr’16.
NMDC iron ore exports increased in Apr’16. The miner exported 0.29 MnT iron ore to South Korea and Japan in Apr’16 against 0.21 MnT in Mar’16. Hence movement for exports increased from 46 rakes in Mar’16 to 71 rakes in Apr’16.
NMDC rake movement – Apr’16 vs Mar’16
|
Movement |
Apr’16 |
Mar’16 |
|
| NMDC(CG) to CG based Plant | Monnet Ispat & Energy | 5 | 6 |
| Shivalay Ispat & Power | 4 | 3 | |
| API Ispat & Power | 4 | 3 | |
| Vandana Global | 3 | 5 | |
| SKS Ispat | 3 | 9 | |
| Shri Nakoda Ispat | 2 | 4 | |
| Grace Industries | 2 | 4 | |
| Real Ispat & Power | 2 | 2 | |
| Shilpy Steels | 2 | 1 | |
| Vaswani Industries | 2 | 3 | |
| Gopani Iron & Power | 1 | – | |
| Gopal Sponge | 1 | 3 | |
| Ghankun Steel | 1 | 3 | |
| Bhagwati Power Steel | 1 | 2 | |
| Sri Hare Krishna Sponge Iron | 1 | 1 | |
| Aarti Sponge & Power | 1 | 2 | |
| Shri Bajrang Power & Ispat | 1 | – | |
| Mahendra Sponge & Power | 1 | 3 | |
| Hi Tech Power Steel | 1 | 1 | |
| Nutan Ispat & Power | – | 1 | |
| Godawari Power & Ispat | – | 2 | |
| Devi Iron & Power | – | 3 | |
| Drolia Electrosteel | – | 3 | |
| N R Sponge | – | 2 | |
| G.R.Sponge & Power | – | 2 | |
| Rashmi Sponge Iron & Power | – | 3 | |
| Gagan Resources | – | 1 | |
| Agrawal Sponge | – | 3 | |
| Total | 38 | 75 | |
| NMDC(C.G.) to Others State | Rastriya Ispat Nigam | 113 | 113 |
| JSW Steel, Dolvi | 41 | 38 | |
| Steel Exchange India | 3 | – | |
| Public | 3 | 2 | |
| Maha Maya | 2 | 5 | |
| Essar Steel | 1 | – | |
| NMDC | 1 | – | |
| Cement Corporation Of India | – | 1 | |
| Total | 164 | 159 | |
| Export | 71 | 46 | |
| Grand Total | 273 | 280 | |
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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