Steel Exchange India has signed a pact with NMDC for long-term iron ore sourcing from the state-owned miner’s upcoming facility in Visakhapatnam, Andhra Pradesh. The agreement will support Steel Exchange India’s integrated steel manufacturing operations by ensuring access to consistent-grade iron ore fines.
Steel Exchange India Ltd (SEIL) informed the stock exchanges about the agreement on Wednesday.
SEIL NMDC Pact to Secure Long-Term Iron Ore Supply
Under the SEIL NMDC pact, the companies will establish a commercial and operational framework for the supply and procurement of iron ore fines from NMDC’s upcoming buffer stockpile and blending yard at Visakhapatnam.
The iron ore fines will have an iron content of 61–63% Fe, providing SEIL with a consistent-grade raw material for its steel manufacturing requirements.
The agreement is aimed at providing SEIL with reliable access to iron ore while supporting the company’s ongoing and future production needs.
Visakhapatnam Facility to Improve Logistics
SEIL said direct procurement from NMDC’s upcoming buffer hub at Visakhapatnam is expected to streamline logistics for its plant operations in Vizianagaram.
The sourcing arrangement is expected to provide lower freight costs, shorter transit times and smoother material movement to SEIL’s facilities.
The proximity of the upcoming NMDC facility to SEIL’s operations is expected to improve supply-chain efficiency and support the company’s raw material requirements.
NMDC Agreement to Support SEIL Expansion
The SEIL NMDC agreement is also expected to support Steel Exchange India’s expansion plans in the near future.
By securing a long-term sourcing framework with NMDC, SEIL aims to strengthen the availability of key raw materials for its integrated steel manufacturing operations.
The agreement marks a strategic step towards improving raw material security, logistics efficiency and operational planning for SEIL.
Source: PSU Watch
