NMDC iron ore production for the month of July’18 recorded at 1.52 MnT, down 35% M-o-M against 2.34 MnT in June’18. On yearly basis, it witnessed similar decline of 37% against 2.41 MnT in July’17. Out of the total material produced in July’18, 0.72 MnT (47% of total production) stood from Bailadila mines, down 57% M-o-M and 0.8 MnT stood from Karnataka mines (up 23% on monthly basis). It seems owing to monsoons production has suffered a setback.
For first four months of FY’19, the total production witnessed at 8.39 MnT, down 23% as against 10.93 MnT in last fiscal (Apr’17- July’17). Out of the total 8.39 MnT, Bailadila mines contributed 66% of production at 5.5 MnT while remaining contributed by Karnataka mines at 2.89 MnT.
NMDC Karnataka iron ore sales increased to more than two fold M-o-M
NMDC’s sales from Karnataka recorded at 0.77 MnT, up more than two folds on monthly basis as against 0.35 MnT in June’18. The increase in sales is owing to price reduction announced by the company on 22nd June’18 by INR 300/MT followed by reduction on 26th July by INR 100/MT (Lumps) and INR 300/MT (Fines). JSW Steel has started purchasing iron ore aggressively from NMDC Karnataka post price reduction announcement made by the company.
NMDC – India’s largest iron ore miner recorded decline in total iron ore sales for July’18 at 1.88 MnT, down 19% as against 2.31 MnT in June’18. On yearly basis, iron ore sales depicted 34% drop as against July’17 sales at 2.83 MnT. Also no movement for export was seen for fourth consecutive month in July’18. On 11th Jul’18 Indian government has renewed export duty unchanged at 10% for iron ore exported from NMDC to Japanese and Korean mills under Long Term Trade Agreement (LTA), however, the company depicted nil exports for the month.
The total sales from NMDC, Bailadila mines for the month recorded at 1.11 MnT, down 43% M-o-M against 1.96 MnT in previous month. Company increased prices for NMDC, Chhattisgarh by INR 140-180/MT, as on 10th July.
For the duration Apr’18-July’18, the total sales depicted decline of 28% to 8.72 MnT as compared to 12.04 MnT for same duration last fiscal (Apr’17-July’17). Out of the total sales of 8.72 MnT in FY’19, 7.08 MnT (81% of total sales) contributed by Bailadila mines and remaining was contributed by Karnataka e-auction at 1.64 MnT.
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 Committe.
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