NMDC Signs Strategic MoU with Steel Exchange India for Long-Term Iron Ore Supply
NMDC Limited, India’s largest government-owned iron ore producer, has signed a strategic Memorandum of Understanding (MoU) with Steel Exchange India Limited (NSE: STEELXIND | BSE: 534748) for the long-term supply of iron ore.
Announced on 9 September 2026, the MoU creates a commercial and operational framework for the procurement of consistent grade Iron Ore Fines (Fe 61–63% and above) from NMDC’s upcoming Buffer Stockpile & Blending Yard at Visakhapatnam, Andhra Pradesh.
Key Highlights of the Agreement
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Long-term Raw Material Security: Ensures steady supply of consistent grade iron ore for Steel Exchange India’s integrated steel operations.
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Strategic Location Advantage: Direct supply options (conveyor, FOB, FOR, FOT or Ex-Stockpile) from the Visakhapatnam hub, located close to SEIL’s plant in Vizianagaram, enabling lower freight costs and faster delivery.
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Duration: Primary term of 4 years, forming the base for upcoming Long-Term Agreements (LTAs).
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Support for Capacity Growth: Aligns with SEIL’s recent operational gains, including the highest-ever monthly Re-Bar production of 24,823.509 MT following the commissioning of its new Reheating Furnace.
Strategic Importance
The partnership strengthens SEIL’s backward integration while providing NMDC with a reliable offtake arrangement from its new Visakhapatnam facility. For Steel Exchange India, the proximity of the supply source is expected to improve logistics efficiency and support higher utilisation of its rolling mills under the SIMHADRI TMT brand.
SEIL operates an integrated steel plant and power unit near Visakhapatnam and is also expanding into specialty steels under the PLI scheme.
The MoU marks a significant step in securing long-term iron ore supplies for one of Eastern India’s leading private steel producers from India’s p