Steel Exchange India touched a day’s high of ₹12.89 after the company signed a four year MoU with NMDC to secure long term iron ore supply.

The agreement, signed on September 8, sets up a framework for sourcing consistent grade iron ore fines with 61 to 63% Fe content or higher.

The ore will come from NMDC’s upcoming Buffer Stockpile and Blending Yard in Visakhapatnam.

This MoU is non-exclusive and non-binding for now. Both companies still need to sign definitive long term agreements before anything becomes contractually locked in. Think of it as the blueprint, not the final contract.

Flexibility is a big part of the appeal here. Steel Exchange India can access the material through direct conveyor delivery, FOB, FOR, FOT or straight from the stockpile, which gives it more say over the consistency and quality feeding its Vizianagaram plant.

Location plays a role too. NMDC’s Visakhapatnam facility sits close to Steel Exchange India’s integrated steel plant, so freight costs and transit times should come down.

This comes right after a production milestone worth mentioning. Steel Exchange India recently posted its highest ever monthly Re-Bar output at 24,823.509 tonnes in August, a jump credited to a newly commissioned reheating furnace.

With rolling capacity now higher, a steady iron ore supply matters more than before to keep production moving without interruption.

Steel Exchange India has called this part of a wider backward integration strategy, meant to reduce its exposure to swings in ore prices while supporting its Simhadri TMT brand and future expansion plans. The company itself has grown well beyond its original business.

Steel Exchange India, the flagship of the Vizag Profiles Group, started out as a steel trading operation before building a gas based power plant, a sponge iron unit and a rolling mill over the years to reach its current integrated setup.

By 14:55 pm on Wednesday, the stock was trading at ₹12.18 on the NSE, up 5.64% on the day.

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