NMDC MoU: NMDC Limited has signed a strategic Memorandum of Understanding (MoU) with Steel Exchange India Limited (SEIL) for the long-term supply of iron ore. The agreement establishes a commercial and operational framework for supplying consistent-grade Iron Ore Fines (Fe 61–63% and above) to SEIL.
The MoU was announced on September 9, 2026, and covers supplies from NMDC’s upcoming Buffer Stockpile & Blending Yard at Visakhapatnam, Andhra Pradesh.
NMDC MoU Supports Long-Term Iron Ore Supply
Under the agreement, Steel Exchange India will have access to a consistent supply of iron ore fines to support its integrated steel operations.
The primary term of the arrangement is four years, providing a framework for future Long-Term Agreements (LTAs) between the two companies.
The Visakhapatnam location also offers a logistics advantage for SEIL, with the supply facility located close to its plant in Vizianagaram.
Visakhapatnam Facility Offers Logistics Advantage
NMDC will provide direct supply options through conveyor, FOB, FOR, FOT or Ex-Stockpile arrangements.
The proximity between the supply hub and SEIL’s operations is expected to help reduce freight costs, improve delivery efficiency and strengthen raw material availability for the steel producer.
For NMDC, the arrangement provides a reliable offtake channel from its upcoming Visakhapatnam facility.
Steel Exchange India Aligns Supply with Capacity Growth
The NMDC MoU comes as Steel Exchange India continues to strengthen its operational performance and capacity utilisation.
The company recently recorded its highest-ever monthly Re-Bar production of 24,823.509 MT following the commissioning of its new Reheating Furnace.
The long-term iron ore arrangement is expected to support SEIL’s raw material security and help improve utilisation of its rolling mills operating under the SIMHADRI TMT brand.
NMDC and SEIL Strengthen Steel Industry Partnership
Steel Exchange India operates an integrated steel plant and power unit near Visakhapatnam and is also expanding into specialty steel production under the Production Linked Incentive (PLI) scheme.
The partnership strengthens SEIL’s backward integration by establishing a long-term source of iron ore, while providing NMDC with a structured offtake arrangement from its upcoming Visakhapatnam facility.
The NMDC MoU therefore marks an important step towards strengthening raw material security, logistics efficiency and long-term supply arrangements between one of India’s leading iron ore producers and a major private-sector steel producer.
Source: PSU Connect
