NMDC iron ore sales down 3%; production up 10% in June'20

NMDC total iron ore sales for the month of June'20 recorded at 2.48 mn t, down 3% as against 2.55 mn t in May'20. On a yearly basis too, the sales fell by 7% as compared to 2.66 mn t in June'19.

The miner suffered some disturbances in its iron ore loading activities at its Bacheli complex since 12 June when the state government had disallowed NMDC to use its loading facilities to store iron ore prior to dispatching them in wagons, claiming that the company was storing iron ore offsite, a claim NMDC disputes. NMDC resumed normal dispatches at its Bacheli iron ore mining complex in the state of Chhattisgarh from 19th June'20. However, the miner had continued to mine iron ore at the complex despite the halt in loadings.

Out of the total sales in June'20, 74% contributed by Chhattisgarh at 1.83 mn t, down slightly on a monthly basis. The total sales from Karnataka mines stood at 0.65 mn t, down 7% against 0.7 mn t in May '20.

Recently NMDC Ltd, India's largest iron ore producer, has increased ore prices by 9-10% for July dispatches. However, NMDC had reduced iron ore prices by 17% each in April and May respectively and left prices unchanged in June.

NMDC iron ore production up 10% in June'20

NMDC iron ore production for the third month of the fiscal FY21 (June'20) was reported at 2.52 mn t. The output increased 10% on a monthly basis compared to 2.29 mn t in May'20. However, on a yearly basis output remained stable.

In June'20, NMDC C.G contributed a major chunk of production of about 74% at 1.86 mn t (up 14% M-o-M basis) and remaining 0.66 mn t produced by Karnataka mines, stable on a monthly basis.

Source-: BSE filings, SteelMint Research
Qty in mn t