1. C.G. based sponge iron units’ sourcing fell 14% M-o-M in Dec’16
2. Outside C.G. based steel units primarily Vizag Steel, JSW Steel and KIOCL significantly raised iron ore sourcing last month
3. Movement for exports remained stable in Dec’16
NMDC supplied 476 rakes of iron ore from its Bailadila mines in Chhattisgarh last month compared to 408 rakes in Nov’16. Thus, 17% M-o-M rise can be noticed in its iron ore supply. NMDC had increased fines prices by INR 100/MT towards end of Nov’16 and lump prices remained unchanged. The same prices were carried over for Dec’16.
C.G. based sponge iron units procurement fell in Dec’16 – C.G. based sponge iron units sourced 56 rakes from NMDC (C.G.) in Dec’16 compared to 65 rakes in Nov’16. It appears that less iron ore procurement is outcome of currency demonetization following which few sponge manufacturers curtailed production.
Outside C.G. based units significantly raised iron ore procurement in Dec’16 – Iron ore procurement by outside C.G. based units increased 25% M-o-M to 354 rakes in Dec’16. RINL (Vizag Steel) sourced 190 iron ore rakes in Dec’16 against 181 rakes in Nov’16. JSW Steel, Dolvi also raised its procurement by 31% M-o-M to 55 rakes in Dec’16.
Southern India based pellet maker – KIOCL sourced 72 rakes from NMDC (C.G.) last month compared to 49 rakes in Nov’16, up 47% M-o-M.
Gallant Ispat sourced 3 rakes from NMDC (C.G.) last month. It looks that the company participated in NMDC’s auction for 128,000 MT iron ore conducted on 13 Dec’16.
NMDC’s movements for exports remained predominantly stable with supply of 66 rakes in Dec’16.
NMDC (C.G.) iron ore rake movement : Nov’16 vs Dec’16
| Consignor | Consignee | Dec-16 | Nov-16 |
| NMDC(CG) to Chhattisgarh based Plant | SKS Ispat | 9 | 5 |
| API Ispat & Power | 6 | 6 | |
| Vandana Global Ltd | 3 | 4 | |
| Niros Ispat | 3 | 1 | |
| Shivalay Ispat & Power Pvt Ltd | 3 | 3 | |
| Devi Iron & Power Ltd | 3 | 2 | |
| Vaswani Industries | 3 | 3 | |
| Rashmi Sponge Iron & Power Ltd | 2 | 2 | |
| Gopal Sponge | 2 | 2 | |
| Ghankun Steel Pvt. Ltd. | 2 | 2 | |
| Mahendra Sponge & Power Ltd | 2 | 2 | |
| Grace Industries | 2 | – | |
| Bhagwati Power Steel | 2 | 2 | |
| Real Ispat & Power Ltd | 2 | 2 | |
| Aarti Sponge & Power Ltd | 2 | 1 | |
| Drolia Electrosteel Ltd | 2 | 2 | |
| Nutan Ispat & Power Ltd. | 2 | 1 | |
| Shri Nakoda Ispat Ltd | 1 | 3 | |
| Shree Shyam Sponge & Power Ltd | 1 | – | |
| Shilpy Steels Pvt Ltd | 1 | 2 | |
| Hi Tech Power Steel | 1 | 1 | |
| Raipur Power & Steel | 1 | – | |
| Monnet Ispat & Energy Ltd | 1 | 5 | |
| Shree Shyam Ispat india Ltd | – | 2 | |
| Sri Hare Krishna Sponge Iron Ltd | – | 1 | |
| G.R.Sponge & Power Ltd. | – | 1 | |
| Gagan Resources Pvt Ltd | – | 1 | |
| Gopani Iron & Power Ltd. | – | 2 | |
| Agrawal Sponge Ltd. | – | 2 | |
| SK Sarawagi & Co Pvt Ltd | – | 2 | |
| N R Sponge | – | 3 | |
| Total | 56 | 65 | |
| NMDC to Other State | Rastriya Ispat Nigam Ltd | 190 | 181 |
| Kudremukh Iron Ore Company Ltd | 72 | 49 | |
| JSW Steel, Dolvi | 55 | 42 | |
| Public | 17 | 1 | |
| Steel Exchange India Ltd | 5 | 2 | |
| Sunflag Iron & Steel Company Ltd | 5 | 4 | |
| NMDC | 4 | 2 | |
| Gallant Ispat | 3 | – | |
| Maha Maya | 3 | 2 | |
| Total | 354 | 283 | |
| Export | 66 | 60 | |
| Grand Total | 476 | 408 | |
Each rake carries approximately 3,850 MT iron ore
Excluding Essar Steel’s movement through slurry pipeline
Source: SteelMint Research, Railways
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