India: NMDC iron ore production up by 74% in April’21

India’s leading iron ore miner NMDC has produced 3.13 mn t iron ore, up by 74% as against 1.8 mn t in Apr’20, SteelMint learned from its BSE filing.

However, on a monthly basis, production volumes fell against 4.57 mn t in Mar’21 due to reduced shifts amid the second wave of COVID.

NMDC announced a sharp price hike for Apr’21, the price of DR CLO (Fe 67%) was increased by INR 580/t, Baila lump by INR 500/t and that of fines by INR 250/t. NMDC announced a second price hike towards mid-Apr’21. The price of DR CLO (Fe 67%) was increased by INR 1,280/t, Baila lump by INR 1,100/t and that of fines by INR 500/t. The changes in MMDR Amendment Act, 2021 for charging additional amount on grant/extension of mining leases granted after 2015 has resulted in iron ore price hike.

The miner recorded a major chunk of output from Chhattisgarh mines at 2.18 mn t and the remaining 0.95 mn t from Karnataka mines.

Source: BSE filings, SteelMint Research
Qty in mn t

NMDC iron ore sales up in Apr’21

NMDC total iron ore sales for the month recorded a significant rise to 3.09 mn t as against 1.38 mn t in Apr’20.

On monthly basis, sales dropped 24% as compared to 4.08 mn t in Mar’21. NMDC had increased the base price for auction from Kumarswamy mines towards mid-Apr’21. Base price for fines moved up by around INR 700/t and that for lumps picked up by about INR 800/t .

The total sales from Chhattisgarh mines stood at 2.39 mn t and the remaining 0.7 mn t was from Karnataka mines.

Outlook-NMDC targets over 40 mn t iron ore production in FY’22. Market participants are waiting for monthly price revision by NMDC which is expected to take place soon. The miner conducted auctions on 30 Apr’21 for 231,000t iron ore from its Chhattisgarh mines, out of which 180,600 t from its Bacheli mines and 50,400 t from Kirandul mines. According to market sources report to SteelMint, the auction received aggressive response with bids moving up by around INR 280/t in fines, INR 930/t in DR-CLO, INR 300/t in ROM and INR 600/t in lump over the set base price.