INDIA —Steel Exchange India Limited (SEIL) has entered into a four-year Memorandum of Understanding (MoU) with NMDC Limited to secure a stable supply of high-grade iron ore. Under the strategic agreement, SEIL will procure Iron Ore Fines featuring Fe content of 61-63% and above directly from NMDC's upcoming Buffer Stockpile & Blending Yard located in Visakhapatnam, Andhra Pradesh.
This raw material procurement arrangement directly addresses input stability for SEIL's integrated manufacturing plant situated in Vizianagaram, near Visakhapatnam. By establishing a direct supply linkage via flexible logistics modes-including conveyor, FOB, FOR, FOT, and ex-stockpile access-the steelmaker mitigates exposure to raw material price volatility and supply chain disruptions while substantially trimming freight overheads.
The procurement pact aligns with SEIL's recent operational scaling, following the commissioning of a new reheating furnace that enabled a record monthly re-bar output of 24,823.509 MT. Securing high-grade ore reserves enables optimal capacity utilization across sponge iron, billet, and rolling operations, reinforcing backward integration for its flagship SIMHADRI TMT brand.
Founded in 1999, Steel Exchange India Limited operates integrated steel production and power generation facilities in Andhra Pradesh, producing TMT rebars and specialty steel products under the central government's PLI scheme. NMDC Limited, a public sector enterprise under the Ministry of Steel, is India's largest merchant iron ore producer, operating major mechanized mines across Chhattisgarh and Karnataka.
For the broader metal sector, long-term procurement models linked to regional blending hubs reflect a growing emphasis on supply chain resilience among mid-tier integrated steel producers. Securing localized raw material infrastructure optimizes operational margins and supports regional infrastructure demand across Eastern and Southern India.
