1. Other State units reduced iron ore sourcing further in Jun’17
2. 22% drop in procurement by outside Chhattisgarh based units
3. Movement for exports down 13% M-o-M
India’s largest iron ore miner – NMDC in total supplied 269 rakes from its Bailadila mines in Chhattisgarh last month against 317 rakes in May’17. Thus NMDC’s iron ore supply from Bailadila mines has gone down by 15% M-o-M in Jun’17. In the month of Jun’17, NMDC had kept iron ore prices unchanged.
Outside C.G. based units reduced iron ore sourcing by 22% – Iron ore procurement of outside C.G. based units decreased 22% M-o-M to 183 rakes in Jun’17 against 235 rakes in May’17. RINL (Vizag Steel) sourced 122 iron ore rakes in Jun’17 against 147 rakes in May’17. JSW Steel’s iron ore procurement from NMDC dropped from 51 rakes in May’17 to 42 rakes in Jun’17.
Southern India based pellet maker – KIOCL sourced 15 rakes from NMDC (C.G.) last month compared to 23 rakes in May’17.
C.G. based sponge units doubles iron ore sourcing in Jun’17 – C.G. based sponge iron units sourced 25 rakes from NMDC (C.G.) in Jun’17 compared to 12 rakes in May’17. Notably C.G. based units procure 60 to 70 rakes on an average in a month from NMDC. Sponge prices declined slightly around INR 300-500/MT in Jun’17 amid lack of trade activities.
Movement for exports decreased in Jun’17 – NMDC loaded 61 rakes for export in Jun’17 compared to 70 rakes in May’17.
NMDC iron ore rake movement: Jun’17 Vs May’17
| Seller | Buyer |
Jun-17 |
May-17 |
| NMDC(CG) to Chhattisgarh based Plant | SKS Ispat |
4 |
2 |
| Gopal Sponge |
3 |
1 |
|
| Gopani Iron & Power Ltd. |
3 |
– |
|
| Ghankun Steel Pvt. Ltd. |
2 |
– |
|
| Shivalay Ispat & Power Pvt Ltd |
2 |
1 |
|
| Bhagwati Power Steel |
1 |
1 |
|
| Agrawal Sponge Ltd. |
1 |
– |
|
| Raipur Power & Steel |
1 |
1 |
|
| Rashmi Sponge Iron & Power Ltd |
1 |
1 |
|
| Shri Nakoda Ispat Ltd |
1 |
3 |
|
| Sunil Sponge |
1 |
– |
|
| API Ispat & Power |
1 |
1 |
|
| Vaswani Industries |
1 |
– |
|
| Nutan Ispat & Power Ltd. |
1 |
– |
|
| Aarti Sponge & Power Ltd |
1 |
1 |
|
| Hi Tech Power Steel |
1 |
– |
|
| Total |
25 |
12 |
|
| NMDC(C.G.) to Other State | Rastriya Ispat Nigam Ltd |
122 |
147 |
| JSW Steel, Dolvi |
42 |
51 |
|
| Kudremukh Iron Ore Company Ltd |
15 |
23 |
|
| Maha Maya |
3 |
4 |
|
| Public |
1 |
7 |
|
| Sunflag Iron & Steel Company Ltd |
– |
1 |
|
| Steel Exchange India Ltd |
– |
1 |
|
| SMC Power Generation |
– |
1 |
|
| Total |
183 |
235 |
|
| Export |
61 |
70 |
|
| Grand Total |
269* |
317 |
|
*Rake movement data updated till 29th, Jun’17
Each rake carries approximately 3,850 MT iron ore
Essar Steel’s movement through slurry pipeline excluded
Source: SteelMint Research, Railways
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