Key Transaction Details
Steel Exchange India Limited (NSE: STEELXIND | BSE: 534748) has entered into a strategic Memorandum of Understanding (MoU) with NMDC Limited, India's premier government-owned iron ore producer. The MoU was signed on September 09, 2026.
Agreement Terms and Specifications
The MoU establishes a commercial and operational framework for supply and procurement of consistent grade Iron Ore Fines with Fe 61-63% and above quality. The material will be sourced from NMDC's upcoming Buffer Stockpile & Blending Yard at Visakhapatnam, Andhra Pradesh. The supply arrangements include direct conveyor, FOB, FOR, FOT, or Ex-Stockpile supply access. The MoU encompasses a primary 4-year term, establishing the operational blueprint for upcoming Long-Term Agreements (LTAs).
Strategic Rationale and Benefits
The agreement significantly enhances SEIL's raw material security by providing direct access to consistent grade iron ore in proximity to its operations. The strategic location of NMDC's Visakhapatnam hub ensures seamless logistics, lower freight costs, and minimal transit times for SEIL's plant operations in Vizianagaram district. This partnership reinforces SEIL's backward integration strategy, mitigating supply volatility and supporting consistent production to cater to growing infrastructure demand under its flagship SIMHADRI TMT brand.
Operational Context
The MoU follows SEIL's recent achievement of recording its highest-ever monthly Re-Bar output of 24,823.509 MT, driven by the operationalization of its new Reheating Furnace (RHF). The agreement is expected to support SEIL's expansion plans in the near future and drive higher mill utilization.
Management Commentary
The management stated that this MoU marks a significant operational milestone in their journey toward long-term operational resilience and sustainable growth. They emphasized that the partnership will optimize input logistics, drive cost efficiencies, and support their commitment to expanding market leadership in quality long steel products.
Company Background
Steel Exchange India Limited (SEIL), part of the Vizag Profiles Group, is a leading manufacturer of TMT rebars under the brand 'SIMHADRI TMT'. The company operates an Integrated Steel Plant & Power Unit in Vizianagaram District, Near Visakhapatnam, with sponge iron, billet, rolling mill, and power generation capacities. The company is diversifying into specialty steels under the PLI scheme to support import substitution.
Disclaimer Included
The document contains forward-looking statements subject to risks and uncertainties including government actions, economic developments, technological risks, and other factors that could cause actual results to differ materially.