NMDC, India’s largest Iron ore miner with 30 MnT production in FY14, has rolled over prices for Jan 2015.
Prices have been unchanged because of good sales volume last month. The company’s Iron ore production and sales increased by 42% M-o-M to 3.4 MnT and by 32% M-o-M to 2.9 MnT respectively in Dec 2014.
The miner reviews Iron ore prices every month, which is revised in line with demand and consumption in domestic market.
In FY15, NMDC’s Iron ore production and sales is anticipated to touch 31 MnT and 32 MnT (out of which 2 MnT shall be exported) respectively. The company is also making up with the production and supply loss it faced in October and November last year owing to cyclone.
NMDC Iron Ore Prices from Oct’14-Jan’15
| Month | 10-150 mm | 10-40 mm, DR CLO | 6-40 mm | Blue Dust/Fines |
| Jan’15 | 3,690 | 4,990 | 4,200 | 3,060 |
| Dec’14 | 3,690 | 4,990 | 4,200 | 3,060 |
| Nov’14 | 3,860 | 5,190 | 4,400 | 3,160 |
| Oct’14 | 4,030 | 5,390 | 4,600 | 3,160 |
Royalty @ 15%; bonus/penalty and other taxes extra
Source: SteelMint Research
NMDC Iron Ore Production & Sales
| Month | Production | Sales |
| Dec’14 | 3.40 | 2.90 |
| Nov’14 | 2.40 | 2.20 |
| Oct’14 | 2.27 | 1.80 |
Qty in MnT
Source: SteelMint Research
NMDC Iron Ore Exports in Dec’14
NMDC exported 0.29 MnT Iron ore in Dec’14 at an average price of USD 86/MT FoB Vizag Port against 0.07 MnT in Nov’14. The miner exports Iron ore on long term contract basis to Japan and South Korea.
| Berthing Date | Qty | Vessel Name | Loading Port | Country |
| 06 Dec, 2014 | 77,000 | Double Providence | Vizag | South Korea |
| 11 Dec, 2014 | 77,000 | Crystal Star | Vizag | South Korea |
| 21 Dec, 2014 | 70,000 | Mykonos Wave | Vizag | South Korea |
| 23 Dec, 2014 | 70,000 | Eisho | Vizag | South Korea |
| Total | 294,000 |
Qty in MT
Provisional data
Source: SteelMint Stats, Customs
In Dec’14 (till the 26th), 0.62 MnT Iron ore has been sold by the company via Karnataka e-auctions. From Bailadila mines in Chhattisgarh, it has supplied 87 Iron ore rakes to state based Steel units last month, which was 89 in Nov’14.
Steel/Sponge iron manufacturers in Chhattisgarh have been reliant on NMDC Ore for last few months because of suspension on mining operations in Odisha. For these units, Iron ore purchases from NMDC is costlier by INR 300-400/MT in comparison to procurement from Odisha based miners as landed cost from the former stands at nearly INR 4,800-5,000/MT (inclusive of all).
With increase in Chhattisgarh’s Pellet making capacity to 5.8 MnT, improved Iron ore supply from Odisha and downtrend in prices, Iron ore buyers shall now have more of raw material sourcing options.
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