NMDC Sales volume to increase by 13%

15 Jul 2009 Evaluate

India’s largest iron-ore producer, forecasted sales volume will rise more than 13 percent in coming financial year.  Shipments in the year will climb to more than 30 million metric tons. Sales the previous year reached 26.5 million tons.

 

NMDC is benefiting as steelmakers lift production to supply to automobile companies, rural markets and public works projects. The government has allocated 1.79 trillion rupees ($37 billion) in the budget year to build networks of roads, telephones, electricity and irrigation. The company has asked the railways to increase the number of rakes allotted to it to 17 from 13 to cope with the increase in shipments. Demand from local steelmakers accounts for almost 90 percent of NMDC’s sales.

 

India’s steel demand climbed to 12.8 million tons in the three months ended June 30 from 12.2 million tons a year earlier, according to Steel Secretary. Global iron-ore demand is also gaining, mainly because of rising demand for steel in China. NMDC sells about 3.5 million tons of iron ore to Japan and South Korea annually.

 

The company signed agreements in the past week with buyers in South Korea and Japan, including Nippon Steel Corp., to sell iron ore at rates at least a third lower than last year. however, it is yet to fix the quantity of supply to these two countries.

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