India: NMDC's iron ore rake movements rise 7% m-o-m in Nov'24

• NMDC's iron ore output up 11% m-o-m in Nov
  
  
• Sourcing by non-state units rises by 8% m-o-m
  
  

The National Mineral Development Corporation (NMDC), India's largest iron ore miner, dispatched 539 rakes from its Chhattisgarh mines in November 2024, equivalent to 2.08 million tonnes (mnt) of iron ore. This was a 7% hike compared to 506 rakes (1.95 mnt) in October, as per BigMint's data.

These rake movements were within Chhattisgarh and to other state-based units but excluded supply to AM/NS India through the slurry pipeline. Each rake carries around 3,850 tonnes (t) of iron ore.

Notably, NMDC's iron ore production volumes touched 4.51 mnt in November, up 11% against 4.07 mnt in October. However, iron ore sales were down marginally by 1% to 4 mnt in November as against 4.03 mnt in October.

The resumption of one of RINL's blast furnaces, which had previously been shut down, contributed to the uptick in iron ore requirements.

As per BigMint's vessel line-up data, India imported around 1.19 mnt of iron ore in November 2024, nearly a six-year high.

Sourcing by non-state units up

Overall, NMDC's iron ore movements to plants outside Chhattisgarh were up by 8% to 361 rakes in November against 334 in October.

Rashtriya Ispat Nigam Limited (RINL) emerged as the top buyer in November, receiving 175 rakes against 135 booked in the previous month, a rise of 30%.

JSW Steel, Dolvi, received 76 iron ore rakes in November, a fall of 26% as compared with 103 in October.

JSPL recorded an increase of 59% in its iron ore rake bookings from NMDC, at 46 in November compared to 29 in October.

Jindal Steel Odisha bought 18 rakes in November, marking a decrease of 38% against 29 in October.

AM/NS sourced 12 rakes in November against 2 in October.

Sourcing by Chhattisgarh-based units increases

NMDC dispatched 178 (0.69 mnt) iron ore rakes to Chhattisgarh-based units in November, a marginal rise of 3% against 172 (0.66 mnt) in November. Additionally, NMDC's supplies to its Nagarnar plant increased in November to 127 rakes compared to 105 in October.

Outlook

NMDC's rake movements are expected to grow in the coming months amid an expected pick-up in demand from steelmakers.