- JSW Steel purchased not even a single rake from NMDC Bailadila Mines
- Iron ore dispatches to Vizag Steel also decreased
- NMDC increased iron ore movement to Vizag Port for exports
- Chhattisgarh based sponge units showed limited buying interest for NMDC’s iron ore
As per railway movement tracked by SteelMint, iron ore dispatches from NMDC’s Bailadila mines have witnessed a significant fall in Jan’16 as compared to Dec’15. The company dispatched 1.09 MnT iron ore in Jan’16 as compared to 1.18 MnT in Dec’15. Dispatches of iron ore dropped down by 7.5% M-o-M.
Surprisingly, JSW Steel, Dolvi having installed capacity of 3.3 MnT pa, had purchased not even a single rake from NMDC’s Chhattisgarh mines. Its been consecutive two months (Dec’15 & Jan’16), the company had not purchased iron ore from NMDC’s mines. However, in Jan’16, the company imported 2 shipments of iron ore from Brazil at Jaigarh Port, Maharashtra, one of concentrate carrying 145,000 MT and another carrying 170,000 MT iron ore fines (Fe 65%) from Carajas complex, Brazil. This could be one of the reason JSW Steel held back iron ore purchases from NMDC.
Vizag Steel, a major iron ore buyer from NMDC, has also decrease iron ore purchases by 20% M-0-M. It had procured 438,900 MT in Jan’16 against 550,550 MT in Dec’15.
In Jan’16, NMDC moved 86 rakes i.e. 331,100 MT iron ore for exports to Vizag Port. This is in regards to LTA signed with Japanese and South Korean Mills. The company moved 319,550 MT iron ore via 83 rakes in Dec’15.
Chhattisgarh based sponge units procured 281,050 MT iron ore via 73 rakes in Jan’16. They showed limited buying interest for iron ore from NMDC. Sponge makers resist themselves from buying raw material as sponge plants have maintained sufficient stock and also dwindling demand for sponge iron have pressurized them to resist buying.
NMDC (Chhattisgarh) Iron Ore Railway Movement
| Movement | Dec’15 | Jan’16 | |
|
NMDC(CG) to CG based Plant |
SKS Ispat | 5 | 7 |
| API Ispat & Power | 4 | 5 | |
| Vandana Global | 3 | 5 | |
| Shivalay Ispat & Power | 4 | 4 | |
| Monnet Ispat & Energy | 3 | 4 | |
| Shri Nakoda Ispat | 3 | 3 | |
| Grace Industries | 4 | 3 | |
| Shri Bajrang Power & Ispat | 3 | 3 | |
| Ghankun Steel | 4 | 3 | |
| Gopal Sponge | 2 | 3 | |
| Mahendra Sponge & Power | 3 | 3 | |
| Hi Tech Power Steel | 1 | 3 | |
| Aarti Sponge & Power | 3 | 3 | |
| Drolia Electrosteel | 3 | 2 | |
| Bhagwati Power Steel | 3 | 2 | |
| Gagan Resources | 2 | 2 | |
| Vaswani Industries | 2 | 2 | |
| Devi Iron & Power | – | 2 | |
| Real Ispat & Power | 4 | 2 | |
| Sunil Sponge | – | 2 | |
| Shilpy Steels | 2 | 2 | |
| Agrawal Sponge | 2 | 2 | |
| Shree Sita Ispat & Power | – | 1 | |
| G.R.Sponge & Power | 2 | 1 | |
| Topworth Steel & Power | 1 | 1 | |
| Nutan Ispat & Power Ltd | – | 1 | |
| Niros Ispat | 2 | 1 | |
| Sri Hare Krishna Sponge Iron | 1 | 1 | |
| Rashmi Sponge Iron & Power | 2 | – | |
| N R Sponge | 1 | – | |
| Total | 69 | 73 | |
|
NMDC(C.G.) to Others State |
Rastriya Ispat Nigam | 143 | 114 |
| Steel Exchange India | 5 | 6 | |
| Maha Maya | 7 | 3 | |
| Cement Corporation Of India | – | 1 | |
| Gopani Iron & Power | – | 1 | |
| Total | 155 | 125 | |
| Export | 83 | 86 | |
| Grand Total | 307 | 284 | |
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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