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()/17/1(4)/ 185 09-11-2017

: () 08/11/17 , - (Ferro-
Alloys) |

Sl.
S.No Name (S/Shri) Designation Name (S/Shri) Designation
No.
1. K K Sharma Sr Mgr (Purchase) 6. R S Sindhu AGM (FPS)
2. Ms Kakoli Roy AGM (PPC) 7. S Khankhoje AGM (RCL)
3. G V Rao AGM (PPC-Prog) 8. S Choudhury DGM (RCL)
4. Deepak Gupta AGM (SMS-II) 9. Rajesh Chawla DGM (CPS)
5. Manish Singh AGM (SMS-I) B Moharana GM I/c (Services)

1.0 Ferro Alloys committee Meeting was held in the room of GM I/c (Services) on 08.11.2017, where the committee
reviewed requirement of various Ferro Alloys for Nov17 to Jan18.
2.0 The stock position and likely requirement of Ferro Alloys for the months (Nov17 to Jan18) is given below:-.

UNIT: TONS
SL. FERRO Stock as on 08-11-17 Requirement
No. ALLOY Source Total SMS-1 SMS-2 C.P.S. U/I Remarks Nov'17 Dec'17 Jan'18 Total
1 Fe-V Indige. 64.84 0.89 1.20 42.75 20 53.00 41.50 43.00 138
2 Fe-Nb Imported 211.68 1.79 1.92 167.97 40 44.00 51.00 51.00 146
3 Fe-Cr-LC Indige. 76.05 0.00 6.05 50.00 20 25.00 20.00 31.00 76
4 Fe-Cr-HC Indige. 64.15 5.63 6.52 52.00 0 54.00 71.00 77.00 202
5 Fe-Mo Indige. 11.45 0.00 1.75 9.70 0 0.25 0.25 0.25 1
6 Fe-Ti Indige. 11.99 0.00 3.81 0.00 8.186 12.50 12.50 12.50 37.5
7 FeMnLC Indige. 37.09 0.00 2.09 35.00 0 73.00 0.00 0.00 73
8 Fe.Phos Indige. 0.00 0.00 0.00 0
9 Copper Indige. 53.70 11.68 0.68 41.33 0 31.00 38.00 45.00 114
10 Nickel Imported 10.59 0.00 0.59 0.00 10 29.20 1.20 1.20 32

3.0 While finalizing the requirement following points were considered :-

a) For Nov17, requirement is based on balance order available with Plant and likely availability projected by
CMO, during Sales Coordination Meeting, for various mills.
b) In absence of firm orders for the month of Dec17 and Jan18, proposed sales plan of CMO as provided by
Marketing Deptt (Copy attached) is taken as the basis.
c) Based on the balance quantity of Ferro Alloys available with plant and expected order availability from CMO
during Nov17, further procurement will be regulated for the coming months.
4.0 Status of various Ferro Alloys
4.1 Fe V Projected requirement for Nov17, Dec17 & Jan18 is 53 T, 42 T, & 43 T respectively. The stock of
this material is 64 T as on date. .MM Deptt has indicated that requirement of 235 T (4 months requirement)
was given to CPA. Back-up POs (for first 2 months) for 117 MT have been placed out of which 40 T
material has already been received and balance will be received in phased manner by 31st Dec17. MM
Deptt has further indicated that price discovery for 118 T (for next two months) is expected by end of Nov17.
4.2 Fe Nb Projected requirement for Nov17, Dec17 & Jan18 is 44 T, 51 T & 51 T respectively and the stock
is about 211 T as on date including 40 T under inspection. This stock is sufficient for more than 3 months
consumption requirement. MM Deptt has indicated ..
4.3 Fe Cr LC The stock of this material is about 76 T at Plant including 20 T under inspection. Projected
requirement for Nov17, Dec17 & Jan18 is 25 T, 20 T & 31 T respectively. MM Deptt has indicated that PO
dues are 19 T. The requirement of 80 T has already been given for the next four months CPA cycle . MM
Deptt has indicated that the Techno-commercial bids were opened
Contd.2
 :: 2::

4.4 Fe Cr HC Projected requirement for Nov17, Dec17 & Jan18 is 54 T, 71 T & 77 T respectively. The stock
of this material is about 64 T at Plant. Requirement of 191 T (for 3 months) given to CMMG for considering
while participating/bidding in next tender of M/s IDCOL but the only 300 T sales order received was taken
by SSP and BSP has not got any qty. Again requirement of 200 MT given and sale order received from M/s
IDCOL. PO will be placed after due approval.
4.5 Fe Mo Projected requirement for Nov17, Dec17 & Jan18 is 0.25 T each. Stock is 11.45 T.
4.6 Fe Ti Projected monthly requirement for Nov17, Dec17 & Jan18 is 12.5 T per month.. MM Deptt. has
indicated that PO for 35 T has been placed on M/s MIDHANI and 10 T material has been received. The
balance materials are expected to be received within a month.
4.7 Fe Mn LC Projected requirement for Nov17, Dec17 & Jan18is 108 T, Nil & Nil respectively. The stock
of this material is about 37 T at Plant. MM Deptt. has indicated that POs for 100 T has been placed and 27 T
has been received. The balance materials (50+23) are expected to be received as per the delivery schedule.
4.8 Fe Phos Projected requirement for Nov17, Dec17 & Jan18is is Nil.
4.9 Copper Projected requirement for Nov17, Dec17 & Jan18 is 31 T, 38 T & 45 T respectively (after taking
copper scrap into consideration). The stock of this material is 53 T at Plant. MM Deptt has informed that PO
for 100 MT was placed and complete material has been received. The requirement of 421 T for Jan18-
Dec18 has been given to CPA. In view of delays in CPA process MM Deptt has indicated that 25% extra
supply (25 T) clause may be invoked against the last PO.
4.10 Nickel - Projected requirement for Nov17, Dec17 & Jan18 is 29.2 T, 1.2 T & 1.2 T respectively. MM
Deptt. has indicated that price discovery for 4th phase for 20 T has been done by CPA-SSP and PO has been
placed. MM Deptt. has indicated that the material is expected to reach by Nov17 end. Requirement of 20 T
for 5th phase of price discovery has been given for the CPA tender.

In addition to projected demand, a buffer stock equivalent to 2 months for Imported & 1 month for the
indigenously procured items needs to be maintained for Ferro Alloys, depending upon the lead time for delivery. In
case of items like Fe Cr (LC), Fe-Mo, Fe Mn (LC) and Nickel where consumption is not consistent and bulk order is
suddenly received, 2 months stock based on annual average consumption may be maintained.
All concerned are requested that consumption should be posted in SAP system immediately after the actual
consumption.
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