- JSW Steel decreased iron ore purchases by upto 84% from NMDC Chhattisgarh mines
- Iron ore dispatches to Vizag Steel also decreased
- NMDC resumes iron ore exports through Long term agreement with South Korean & Japanese mills
- NMDC’s iron ore purchases from Chhattisgarh based sponge manufacturers reduced drastically over declining sponge prices
According to recent railway movement tracked by SteelMint, iron ore dispatches from NMDC’s Chhattisgarh mines have witnessed a significant fall in Nov’15. The company dispatched 912,450 MnT iron ore in Nov’15 against 1,309,000 MT in Oct’15. Dispatches of iron ore decreased by 30% against Oct’15.
Two major buyers viz. JSW Steel Dolvi and Vizag Steel have significantly decreased their purchases from NMDC’s C.G mines by upto 84% and 13.2% respectively in Nov’15.
Iron ore procurement of JSW Steel, Dolvi, decreased drastically by 84% M-o-M. JSW Steel loaded only 13 rakes i.e. 50,050 MT iron ore in Nov’15 against 80 rakes i.e. 308,000 MT in Oct’15.
RINL, a major buyer of iron ore from NMDC (Chhattisgarh) also decreased its purchases i.e. 604,450 MT via 157 rakes in Nov’15, against 696,850 MT via 181 rakes in Oct’15.
NMDC, had resumed iron ore movement to Vizag Port for exports. The company moved about 49 rakes i.e. 188,650 MT (each rake carrying approx 3,850 MT) iron ore (mainly fines) to Vizag port in Nov’15 against 13 rakes i.e. 50,050 MT in Oct’15. The company had exported 2 iron ore vessels of 70,000 MT & 77,000 MT to South Korea in Nov’15.
In addition, C.G based sponge manufacturers showed less buying interest from NMDC’s ore in Nov’15. C.G based sponge makes resist themselves from buying raw material as sponge prices are already down by INR 500-800/MT W-o-W and also heading towards further fall. Sponge prices are under pressure due to low demand and cost input of iron ore from Odisha based merchant miners.
| Movement | Oct’15 | Nov’15 | |
| NMDC (C.G.) to C.G. based plant | SKS Ispat | 2 | 2 |
| Shri Nakoda Ispat Ltd | 3 | 2 | |
| Shivalay Ispat & Power Pvt Ltd | 3 | 2 | |
| Vandana Global Ltd | 6 | 2 | |
| G.R.Sponge & Power Ltd. | 1 | 1 | |
| Gopal Sponge | 2 | 1 | |
| Gagan Resources Pvt Ltd | – | 1 | |
| Ghankun Steel Pvt. Ltd. | 2 | 1 | |
| Lloyds Metals & Energy Ltd | – | 1 | |
| Shilpy Steels Pvt Ltd | 1 | – | |
| Real Ispat & Power Ltd | 2 | – | |
| Rashmi Sponge Iron & Power Ltd | 1 | – | |
| API Ispat & Power | 3 | – | |
| Sarda Energy & Minerals Ltd | 12 | – | |
| Hi Tech Power Steel | 1 | – | |
| Jayaswal Neco Industries Ltd | 5 | – | |
| Bhagwati Power Steel | 1 | – | |
| Topworth Steel & Power Pvt Ltd | 1 | – | |
| Sri Hare Krishna Sponge Iron Ltd | 3 | – | |
| Vaswani Industries | 3 | – | |
| Niros Ispat | 1 | – | |
| Mahendra Sponge & Power Ltd | 3 | – | |
| Aarti Sponge & Power Ltd | 2 | – | |
| N R Sponge | 1 | – | |
| Total | 59 | 13 | |
| NMDC (C.G.) to Other State | Rastriya Ispat Nigam Ltd | 181 | 157 |
| JSW Steel, Dolvi | 80 | 13 | |
| Maha Maya | 5 | 3 | |
| Steel Exchange India Ltd | – | 2 | |
| Tata Steel | 2 | – | |
| Total | 268 | 175 | |
| Export | 13 | 49 | |
| Grand Total | 340 | 237 | |
Each rake carries approximately 3,850 MT iron ore
Excluding Essar Steel’s movement which is through slurry pipeline
Source: SteelMint, Railways
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