India: NMDC Iron Ore Rake Movement to Chhattisgarh Units Up 33% in Dec'19

Chhattisgarh based steel plants increased sourcing from NMDC (C.G.) sharply by 33% from 45 rakes (equivalent to 173,250 MT) in Nov'19 to 60 rakes (231,000 MT) in Dec'19. These figures did not include movement through the road. NMDC kept iron ore prices unchanged for Dec'19 which could be a major reason behind sharp increase in procurement by state-based units.

NMDC (Chhattisgarh) supplied a total 387 rakes (1.49 MnT) of iron ore in the month of Dec'19, up 11% against 348 rakes (1.34 MnT) a month before in Nov'19, according to railway movement data maintained with SteelMint.

Last month NMDC informed that the state government of Chhattisgarh announced the lease extension of four mines that are due for extension in March 2020.

NMDC's supplies to outside state-based units up 11% in Dec'19-: The procurement by outside C.G based units increased for the month by 11% in Dec'19 to 274 rakes (1.05 MnT) as against 246 rakes (0.95 MnT) in Nov'19.

KIOCL sourcing from NMDC (C.G) increased sharply to 47 rakes in Dec'19 against 32 rakes in Nov'19.
RINL's procurement from NMDC Bailadila mines stable on a monthly basis to 144 rakes as compared to Nov'19 procurement at 145 rakes. Company is also procuring iron ore from OMC iron ore e-auctions and Karnataka auctions.

JSW Steel (Dolvi) sourcing from NMDC was recorded at 62 rakes in Dec'19 against 55 rakes in Nov'19.

Movement for exports was recorded at 53 rakes in Dec'19 against 57 rakes in Nov'19.

NMDC (C.G.) Iron ore rake movement: Dec'19 Vs. Nov'19

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