Steel Exchange India has entered into a Memorandum of Understanding (MoU) with NMDC on 08 September 2026 to establish a framework for potential long-term iron ore supply. According to the latest disclosure filed with BSE Limited and National Stock Exchange of India Limited, the agreement creates a commercial and operational framework for the supply and procurement of Consistent grade Iron Ore Fines having Fe content of 61-63% and above. The MoU is specifically designed to source iron ore from NMDC's upcoming Buffer Stockpile & Blending Yard at Visakhapatnam, Andhra Pradesh. The disclosure was made under Regulation 30 of the SEBI Listing Regulations, with investors now monitoring whether the two companies convert the MoU into binding long-term supply agreements.
Steel Exchange India shares surged 12% following the MoU announcement, with the stock trading at ₹11.96 per equity share as of 3:11 PM on September 9, 2026. According to market data, the stock has soared 13% in the past week and 7% over the month, with a year-to-date jump of 26%. The stock hit a 52-week high of ₹13.95 on June 22, 2026, while touching a year's low of ₹7 per unit on March 30, 2026. Steel Exchange India currently has a total market capitalisation of ₹1,525.52 crore as of September 9, 2026, according to NSE data.
The MoU is structured as non-exclusive and non-binding in nature with a primary term of four years. As reported by Business Standard, the agreement provides a framework for potential long-term supply of iron ore to support the Company's integrated steel manufacturing operations. According to the latest exchange filing, "This agreement significantly enhances SEIL's raw material security, providing direct conveyor, FOB, FOR, FOT, or Ex-Stockpile supply access to consistent-grade iron ore right in its proximity." The partnership is subject to the terms of definitive Long-Term Agreements that will be entered into between the parties in the future. Steel Exchange India did not disclose the proposed supply volume, transaction value, pricing mechanism or timeline for executing the definitive agreements, leaving key commercial details to be negotiated in future agreements.
The proximity of NMDC's Visakhapatnam hub to Steel Exchange India's integrated production facilities will yield substantial logistics cost advantages and operational agility. As reported by the company, the tie-up will reinforce its backward integration strategy and mitigate supply volatility. Management stated that "Signing this strategic MoU with NMDC Limited marks a significant operational milestone in our journey toward long-term operational resilience and sustainable growth." They added that "having recently expanded our Re-Bar manufacturing capability through our new Reheating Furnace, securing consistent grade iron ore from NMDC's Visakhapatnam Buffer Hub solidifies our raw material pipeline." The partnership is expected to optimise the company's input logistics, drive cost efficiencies, and support its commitment to expanding market leadership in quality long steel products.
