India: NMDC Iron Ore Rake Movement from Chhattisgarh Fell Significantly in Oct'17

1. Other state based units decreased iron ore sourcing 45% M-o-M
2. 56% increased in procurement by Chhattisgarh based units.
3. Export movement Up 50% M-o-M.

India's largest iron ore miner - NMDC in total supplied 192 rakes from its Bailadila mines in Chhattisgarh last month Oct'17 against 274 rakes in Sept'17. NMDC's iron ore supply from Bailadila mines has decreased by 30% M-o-M in Oct'17. Prime reason behind fall in dispatches was disruption of railway line connecting Andhra Pradesh.

Outside C.G. based units raised iron ore sourcing by 45% - Iron ore procurement of outside C.G. based units decreased 45% M-o-M to 126 rakes in Oct'17 against 231 rakes in Sept'17. RINL (Vizag Steel) decreased sourcing by 18% M-o-M to 79 rakes of iron ore in Oct'17 against 96 rakes in Sept'17. Transportation on this route has been badly affected following disruption of railway line connecting Andhra Pradesh. KIOCL and JSW Steel, Dolvi reduced iron ore sourcing from NMDC (C.G.) by 53% and 76% respectively in Oct'17.

C.G. based sponge units iron ore sourcing Increased by 56% in Oct'17 - C.G. based sponge iron units sourced 42 rakes from NMDC (C.G.) in Oct'17 compared to 27 rakes in Sept'17. It is to be noted that C.G. based units procure 60 to 70 rakes on an average in a month from NMDC. Sponge iron prices kept trading at lower levels in 1st half of Oct'17 and then increased sharply in the next half.. In the month of Oct'17, the miner had decreased iron ore prices up to 5%.

Movement for exports increased in Oct'17 - NMDC exports up 50% to 24 rakes of iron ore in Oct'17 compared to 16 rakes in Sept'17.

NMDC (C.G.) Iron ore rake movement : Oct'17 Vs Sept'17

Each rake carries approximately 3,850 MT iron ore
Essar Steel's movement through slurry pipeline excluded
Source: SteelMint Research, Railways