NMDC – India’s largest iron ore miner has observed sharp fall in production & sales volumes in first half of this fiscal. In H1 FY’19, the total production witnessed at 12.21 MnT, down 22% as against 15.65 MnT in H1FY18. Out of the total 12.21 MnT, Bailadila mines contributed 61% of production at 7.5 MnT (down 23% Y-o-Y) while remaining contributed by Karnataka mines at 4.71 MnT (down 20%).
On quarterly premises, NMDC iron ore production was down by 22% In Q2 FY19. Fall in production was due to heavy rains and monsoon factor which affected the production volumes.
However, iron ore production for the month of Sep’18 recorded at 2.36 MnT, up significantly 62% as against 1.46 MnT in Aug’18. Out of the total material produced in Sep’18, 1.33 MnT (56% of total production) stood from Bailadila mines, up two folds M-o-M and 1.03 MnT stood from Karnataka mines (up 30% on monthly basis).
NMDC iron ore sales down 24% in H1 FY19
For H1 FY19, the total sales depicted decline of 24% to 13.4 MnT as compared to 17.61 MnT H1 FY18. Out of the total sales of in H1 FY’19, 9.6 MnT contributed by Bailadila mines and remaining was contributed by Karnataka e-auction at 3.8 MnT. Sales from Bailadila mines declined by 12% and that from Karnataka by 43% Y-o-Y. JSW Steel-major iron ore buyer in Karnataka had increased imports on high base prices in Karnataka e-auctions which resulted in decline in sales volumes from Karmataka.
NMDC iron ore sales for the month of Sep’18 recorded at 2.36 MnT, up against 2.32 MnT in Aug’18. NMDC resumed movement for exports from Chhattisgarh mines in Sep’18 after gap of 5 months.
NMDC’s Karnataka iron ore sales down 24% in Sep’18
NMDC’s iron ore sales from Karnataka mines recorded at 0.93 MnT, down 24% on monthly basis as against 1.23 MnT in Aug’18. In Sep’18, the miner increased base prices in Karnataka e-auctions by INR 350/MT in fines & INR 300/MT in lumps on 26th Sep’18. Prior to this on 10th Sept the miner had raised prices by INR 150/MT in fines & INR 200/MT in lumps.
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