NMDC INKS PACK WITH STEEL EXCHANGE INDIA FOR IRON ORE SUPPLY

India's largest iron ore producer

has entered into a four-year Memorandum of Understanding (MoU) with Steel Exchange India Ltd (SEIL) to supply consistent-grade iron ore fines for it's Vizianagaram plant. Under the agreement, SEIL will procure iron ore fines with Fe content of 61–63% 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. Recently, NMDC has hiked Iron Ore Prices (Lump Ore) by Rs 150/ton, however it has kept the prices of Iron Ore Fines unchanged. This price increase will improve the company's margins in the coming quarters. Having a market cap of Rs 74,940 crores, the company has maintained a strong ROCE and ROE of 27.6% and 23.4% respectively.