- Iron ore purchases from NMDC-Bailadila mines by JSW Steel remained almost nill
- Vizag Steel decreased iron ore purchases by 9%
- NMDC iron ore exports resumed last quarter
- NMDC’s iron ore purchases from Chhattisgarh based sponge manufacturers increased
As per recent railway movement tracked by SteelMint, iron ore dispatches from NMDC’s Chhattisgarh mines have witnessed significant increase in Dec’15. The company dispatched 1,181,950 MT iron ore in Dec’15 against 912,450 MT in Nov’15. Dispatches of iron ore increased by 29% against Nov’15.
JSW Steel, Dolvi a major purchaser of NMDC’s ore, had reported drastical drop in iron ore purchases. The steelmaker procured not even a single rake against 13 rakes i.e. 50,050 MT in the month of Nov’15. Currently, JSW Steel has resumed iron ore purchases from Goa e-auctions after a span of 1-year.
RINL, a major buyer of iron ore from NMDC (Chhattisgarh), had also reported decrease of 9% M-o-M. It had procured 550,550 MT iron ore in Dec’15 against 604,450 MT in Nov’15.
In Q3 FY16, NMDC resumed its iron ore exports to Japanese and South Korean mills under LTAs. The company moved about 83 rakes i.e 319,550 MT (each rake carrying approx 3,850 MT) iron ore in Dec’15 to Vizag Port against 49 rakes i.e 188,650 MT in Nov’15. In Dec’15, the company exported total 299,700 MT high grade iron ore via 4 shipments (2 for South Korea and 2 for Japan).
In addition, CG based sponge manufacturers increased their purchases. Total 69 rakes i.e 265,650 MT had been purchased from CG based sponge manufacturers in Dec’15 against 13 rakes i.e 50,050 MT in Nov’15. There is some improvement seen in sponge iron prices. This movement in price rally is due to short supply of sponge iron to steel mills, who were running their mills under capacity. Also, government’s measure to introduce MIP (Minimum Import Price) on certain steel products to support the domestic steel industry could be another reason for price increment.
Link to iron ore supply details by NMDC-Bailadila mines in Dec’15
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