Key Highlights
- Steel Exchange India Limited signed a strategic MoU with NMDC Limited for long-term iron ore procurement.
- The agreement covers the supply of Iron Ore Fines with Fe content of 61–63% and above from NMDC’s upcoming Visakhapatnam Buffer Stockpile and Blending Yard.
- The MoU has a primary four-year term and establishes a framework for future long-term supply agreements.
- The partnership is expected to strengthen SEIL’s raw material security, logistics efficiency and supply-chain resilience.
- SEIL recently operationalised a new Reheating Furnace and recorded its highest-ever monthly Re-Bar production of 24,823.509 MT.
- The arrangement is expected to support SEIL’s expanded steelmaking capacity and growth of its SIMHADRI TMT brand.
Steel Exchange India Limited (SEIL) has entered into a strategic Memorandum of Understanding (MoU) with NMDC Limited for the long-term procurement of iron ore, aimed at strengthening raw material security and supporting the company’s expanding steelmaking operations.
Under the MoU, SEIL will establish a commercial and operational framework for procuring consistent-grade Iron Ore Fines with Fe content of 61–63% and above from NMDC’s upcoming Visakhapatnam Buffer Stockpile and Blending Yard in Andhra Pradesh.
The arrangement is expected to provide SEIL with access to iron ore through multiple supply modes, including conveyor, FOB, FOR, FOT and ex-stockpile arrangements, depending on operational requirements.
Long-Term Iron Ore Supply Arrangement
The strategic partnership is designed to provide SEIL with a more consistent supply of raw material for its integrated steel manufacturing operations. The proximity of NMDC’s proposed Visakhapatnam facility to SEIL’s production units is expected to provide logistical advantages, including shorter transit times and potentially lower transportation costs.
The MoU carries a primary four-year term and is intended to establish an operational framework for potential long-term agreements between the two companies.
The arrangement also comes as SEIL expands its steel production capabilities. The company recently operationalised its new Reheating Furnace (RHF), which is expected to support higher mill utilisation and production capacity.
Focus on Raw Material Security and Logistics
SEIL said the agreement is expected to strengthen its backward integration strategy by securing a steady supply of suitable-grade iron ore close to its manufacturing facilities.
The location of NMDC’s Visakhapatnam hub is also expected to improve supply-chain efficiency for SEIL’s operations in the region. The company said the strategic tie-up could help mitigate raw material supply volatility while supporting its ability to meet demand for long steel products under its SIMHADRI TMT brand.
The company has also reported its highest-ever monthly Re-Bar production of 24,823.509 metric tonnes, following the operationalisation of its new reheating furnace.
SEIL Management on NMDC Partnership
Commenting on the development, Steel Exchange India management said the MoU with NMDC represents an important step toward strengthening long-term operational resilience and sustainable growth.
The company stated that the recently expanded Re-Bar manufacturing capability, combined with access to consistent-grade iron ore from NMDC’s Visakhapatnam Buffer Hub, would strengthen its raw material pipeline and support improvements in logistics and cost efficiency.
The partnership is expected to contribute to SEIL’s expansion plans and its focus on increasing production of quality long steel products.