Outside Chhattisgarh based units – primarily RINL and JSW Steel raise iron ore sourcing by 31% and 27% respectively in Oct’16. NMDC’s iron ore supply to C.G. based units and movement for export remained stable last month.
NMDC supplied 356 rakes of iron ore from its Bailadila mines in Chhattisgarh last month compared to 314 rakes in Sept’16. Thus, 13% M-o-M rise can be noticed in its iron ore supply. NMDC had raised iron ore prices by INR 300-460/MT M-o-M for Oct deliveries.
Chhattisgarh based sponge iron units procured 65 rakes from NMDC in Oct’16 against 64 rakes last month. After witnessing sharp hike till 1st week of Oct’16, sponge iron prices in central India witnessed a downtrend in rest part of the month and fell by INR 1,000-1,300/MT. Dull demand and limited trades kept sponge prices under pressure in Oct’16.
Outside Chhattisgarh based units raised their iron ore procurement considerably last month. Vizag Steel’s iron ore sourcing from NMDC (C.G.) moved up by 31% M-o-M. The steel maker sourced 153 rakes in Oct’16 against 117 rakes in Sept’16. According to sources report to SteelMint, the steel maker has increased steel prices by INR 1,200-1,500/MT for Nov deliveries amid surge in coking coal prices.
KIOCL procured 25 rakes of iron ore fines from NMDC (C.G.) last month compared to 22 rakes in Sept’16. The pellet maker has raised its iron ore sourcing significantly this fiscal in line with increased pellet export shipments.
JSW Steel, Dolvi increased its iron ore procurement from NMDC (C.G.) by 27% M-o-M from 33 rakes in Sept’16 to 42 rakes in Oct’16. Gallant Ispat sourced four rakes from NMDC (C.G.) last month.
Rake movement for export remained stable on monthly premises and the miner loaded 48 rakes in Oct’16 against 47 rakes in Sept’16.
NMDC (C.G.) iron ore rake movement : Oct’16 vs Sept’16
| Movement | Oct-16 | Sep-16 | |
| NMDC(CG) to Chhattisgarh based Plant | SKS Ispat | 8 | 7 |
| API Ispat & Power | 2 | 5 | |
| Raipur Power & Steel | – | 5 | |
| Vandana Global Ltd | 7 | 5 | |
| Ghankun Steel Pvt. Ltd. | 4 | 5 | |
| Grace Industries | 2 | 4 | |
| Mahendra Sponge & Power Ltd | 2 | 4 | |
| Rashmi Sponge Iron & Power Ltd | – | 3 | |
| Shri Nakoda Ispat Ltd | 2 | 3 | |
| Shivalay Ispat & Power Pvt Ltd | 3 | 2 | |
| Real Ispat & Power Ltd | 1 | 2 | |
| Drolia Electrosteel Ltd | 1 | 2 | |
| Public | – | 2 | |
| Monnet Ispat & Energy Ltd | 5 | 2 | |
| Vaswani Industries | 3 | 2 | |
| Niros Ispat | 1 | 2 | |
| N R Sponge | 2 | 2 | |
| Aarti Sponge & Power Ltd | 3 | 1 | |
| Devi Iron & Power Ltd | 1 | 1 | |
| Crest Steel & Power Ltd. | – | 1 | |
| G.R.Sponge & Power Ltd. | – | 1 | |
| Agrawal Sponge Ltd. | – | 1 | |
| Nutan Ispat & Power Ltd. | 1 | 1 | |
| Shilpy Steels Pvt Ltd | – | 1 | |
| Sunil Sponge | 2 | – | |
| Gopani Iron & Power Ltd. | 2 | – | |
| Bhagwati Power Steel | 2 | – | |
| Phil Ispat | 1 | – | |
| Sri Hare Krishna Sponge Iron Ltd | 1 | – | |
| Gagan Resources Pvt Ltd | 2 | – | |
| Topworth Steel & Power Pvt Ltd | 1 | – | |
| Shree Sita Ispat & Power Pvt. Ltd. | 1 | – | |
| Gopal Sponge | 2 | – | |
| Hi Tech Power Steel | 2 | – | |
| Jayaswal Neco Industries Ltd | 1 | – | |
| Total | 65 | 64 | |
| NMDC to Other State | Rastriya Ispat Nigam Ltd | 153 | 117 |
| JSW Steel, Dolvi | 42 | 33 | |
| Kudremukh Iron Ore Company Ltd | 25 | 22 | |
| Public | 8 | 10 | |
| Sunflag Iron & Steel Company Ltd | 5 | 5 | |
| Steel Exchange India Ltd | 1 | 4 | |
| Gallant Ispat | 4 | 4 | |
| Maha Maya | 3 | 3 | |
| Mahamaya Steel Industries | – | 2 | |
| NMDC | 1 | 2 | |
| Gopani Iron & Power Ltd. | 1 | 1 | |
| Total | 243 | 203 | |
| Export | 48 | 47 | |
| Grand Total | 356 | 314 | |
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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