Steel Exchange India has entered into a strategic Memorandum of Understanding with NMDC Limited to secure a long-term supply of iron ore. The agreement, signed on September 8, 2026, supports the company's expansion plans for its integrated steel manufacturing operations.

The MoU establishes a commercial framework for procuring consistent grade Iron Ore Fines with an Fe content of 61–63% and above. The ore will be sourced from NMDC's upcoming Buffer Stockpile & Blending Yard located in Visakhapatnam, Andhra Pradesh.

Deal Structure and Terms

The agreement is non-exclusive and non-binding in nature. It carries a primary term of four years. The MoU serves as a precursor to definitive Long-Term Agreements that will be executed between the parties in the future.

Strategic Implications

This partnership aims to provide raw material security for Steel Exchange India's operations at its Sreerampuram integrated steel plant in Vizianagaram District. By linking directly to NMDC's blending infrastructure, the company seeks to ensure consistent quality inputs for its production lines.

The proximity of NMDC's Visakhapatnam hub to SEIL's integrated production facilities yields substantial logistics cost advantages and operational agility. This strategic tie-up reinforces SEIL's backward integration strategy, mitigating supply volatility and empowering the company to consistently cater to growing infrastructure demand under its flagship SIMHADRI TMT brand.

Operational Context

The MoU complements SEIL's recent production milestones, including the successful operationalization of its Reheating Furnace (RHF). Following this expansion, SEIL recorded its highest-ever monthly Re-Bar output of 24,823.509 MT. Securing a steady stream of premium iron ore becomes paramount as the company drives higher mill utilization.

Management stated that signing this strategic MoU marks a significant operational milestone in the journey toward long-term operational resilience and sustainable growth. The partnership aims to optimize input logistics and drive cost efficiencies.

What the Numbers Show

The reliance on a single specific grade (Fe 61–63%) indicates a targeted procurement strategy rather than a broad-based supply deal. This specificity suggests the company is optimizing its blast furnace mix for cost efficiency or quality consistency. The recent record monthly output of 24,823.509 MT highlights the immediate need for secured raw material inputs to sustain expanded capacity utilization.

Regulatory Disclosure

Steel Exchange India made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was issued on September 9, 2026, to both the BSE Limited and the National Stock Exchange of India Limited.

Steel Exchange India Limited paid ₹1.54 crore in monthly interest on its Secured Non-Convertible Debentures (NCDs) on September 7, 2026. The payment aligns with the scheduled due date for the instrument.

The company disclosed the transaction under Regulation 57(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The interest payment relates to the NCD series with ISIN INE503B07044.

Payment Details

The total issue size for this NCD series stands at ₹38.28 crore. The interest is payable on a monthly basis, with no changes to the frequency reported.

Raveendra Babu M, Company Secretary and Compliance Officer, certified the payment. The company confirmed there were no delays or reasons for non-payment.