Steel Exchange India, NMDC Ink Four-Year Pact For Iron Ore Supply
Steel Exchange India has signed a four-year pact with NMDC to secure consistent-grade iron ore for its Vizianagaram plant and support capacity expansion.
Steel Exchange India Ltd (SEIL) has entered into a four-year Memorandum of Understanding (MoU) with state-owned iron ore producer NMDC Ltd to secure a steady supply of consistent-grade iron ore fines for its Vizianagaram plant.
Under the pact, SEIL will procure iron ore fines with Fe content of 61–63 per cent and above directly from NMDC’s upcoming Buffer Stockpile and Blending Yard at Visakhapatnam. The arrangement is expected to reduce freight costs and transit time while ensuring a reliable raw material supply for the steel manufacturer.
The company said the agreement provides a commercial and operational framework for procurement and could pave the way for longer-term supply arrangements. It will also support SEIL’s capacity expansion and backward integration plans following the operationalisation of its new Reheating Furnace (RHF).
“Having recently expanded our Re-Bar manufacturing capability through our new Reheating Furnace, securing consistent-grade iron ore from NMDC’s Visakhapatnam Buffer Hub solidifies our raw material pipeline,” SEIL management said.
The proximity of the NMDC facility to SEIL’s production operations is expected to improve input logistics and generate cost efficiencies. The tie-up is also aimed at strengthening the company’s position in the long steel products segment.
The agreement comes after SEIL reported record monthly Re-Bar production of 24,823.509 metric tonnes following the commissioning of its new reheating furnace.
SEIL said the partnership with NMDC would provide greater stability in raw material availability while supporting its expansion strategy and efforts to enhance production efficiency and market presence.