NMDC recorded a fall of 19% in iron ore output in Q1 FY19. On yearly basis, the production depicted decline of 19% to 6.87 MnT in Q1 FY19 compared to first quarter FY’18 at 8.52 MnT.The production recorded at 6.87 MnT, in first quarter FY’19 as against 11.27 MnT in last quarter (Q4 FY’18).
Out of the total iron ore production of 6.87 MnT in Q1 FY’19, 4.78 MnT (70% of total production) was contributed by NMDC Bailadila mines in Chhattisgarh, witnessed significant decline by 43% compared to 8.34 MnT in Q4 FY’18. The remaining 2.09 MnT iron ore was produced from NMDC’s Karnataka mines, down 29% compared to 2.93 MnT in Q4 FY’18.
NMDC Iron ore Production increased 10% M-o-M in June’18 –
NMDC iron ore production for June’18 recorded at 2.34 MnT, up 10% M-o-M against 2.12 MnT in May’18. However, on yearly basis, it witnessed 19% decline against 2.89 MnT in June’17. Out of the total material produced in June’18, 1.69 MnT (72% of toal production) stood from Bailadila mines, up 11% M-o-M and 0.65 MnT stood from Karnataka mines (up 8% on monthly basis).
NMDC iron ore sales fell sharply by 26% Y-o-Y in Q1 FY’19 –
NMDC witnessed decline in iron ore sales for first quarter FY’19 at 6.84 MnT, down 34% as compared to 10.43 MnT in Q4 FY’18. On yearly basis, iron ore sales depicted 26% fall as against Q1 FY’18 sales at 9.21 MnT. Also no movement for export was seen in this quarter. Iron ore exported by NMDC under MMTC under Long-Term Agreement was subject to an export duty of 10% which expired on 31 Mar’18. There has been no update regarding duty structure till date.
The total sales from NMDC, Bailadila mines for the quarter contributed 87% of total share of sales at 5.97 MnT, down 16% Q-o-Q against 7.14 MnT in previous quarter. The sales from Karnataka contributed remaining 13% of sales at 0.87 MnT, down 74% on quarterly basis. Major southern India based steel mills had reduced purchases in April & May owing to high base prices in Karnataka e-auctions resulting in less sales volume of NMDC.
NMDC’s iron ore sales from Karnataka increase in June –
In June’18, the miner recorded total sales at 2.31 MnT, stable on monthly basis. For the month, iron ore sales from Chhattisgarh mines recorded at 1.96 MnT, down 7% M-o-M. NMDC, Karnataka reduced the prices on June’18 (22nd June), resulting in increased sales to 0.35 MnT, up 67% M-o-M as against 0.21 MnT in May’18.JSW Steel has started purchasing iron ore aggressively from NMDC Karnataka post price reduction announcement made by the company.
In FY’18, NMDC registered best ever production and sales at 35.5 MnT and at 36.4 MnT respectively. Rendering the miner to increase its iron ore production capacity plans to 50 MnT by 2019-20 to achieve the target of 67 MnT iron ore by 2022. In a major development, NMDC has got approval to enhance its iron ore production limit to 14 MnT by CEC (Central Empowered Committee).
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