India: NMDC Iron Ore Rake Movement to State-Based Units Fall Sharply in Feb'20
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State-based steel plants decreased iron ore sourcing from NMDC (C.G.) significantly by 76% from 70 rakes (equivalent to 269,500 MT) in Jan'20 to 17 rakes (65,450 MT) in Feb'20 (This does not include movement through road).
NMDC had raised iron ore prices twice in the month of Jan'20, making a total increase of INR 550-600/MT in both lump and fines and around INR 700/MT in DR CLO.
On the other hand, pellet prices in the Raipur region decreased sharply due to competitive offers from Raigarh and Jharsuguda. Perhaps most of the manufacturers have stock substantially for the next few months as per the sources.
NMDC has supplied a total of 399 rakes (1.54 MnT) of iron ore in the month of Feb'20, up 4% against 383 rakes (1.47 MnT) a month before in Jan'20, according to railway movement data maintained with SteelMint.
NMDC's supplies to outside state-based units increased by 22% in Feb'20:
The procurement by outside C.G based units increased for the month by 22% in Feb'20 to 319 rakes (about 1.23 MnT), increased sharply against 261 rakes (1 MnT) a month ago.
KIOCL sourcing from NMDC (C.G) has dropped by 9% to 39 rakes in Feb'20 as against 43 rakes in Jan'20. Since the last two months company's iron ore sourcing from NMDC (C.G) declined with the same rate.
RINL's procurement from NMDC Bailadila mines increased by 33% on a monthly basis to 186 rakes as compared to Jan'20 procurement at 140 rakes.
JSW Steel (Dolvi) sourcing from NMDC was also increased by 8% to 66 rakes in Feb'20 against 61 rakes in Jan'20.
Movement for exports too recorded up by 21% to 63 rakes in Feb'20 against 52 rakes in Jan'20.
NMDC (C.G.) Iron ore rake movement: Feb'20 vs. Jan'20
| Seller | Buyer | Feb-20 | Jan-20 |
| NMDC(CG) to Chhattisgarh based Plant | Monnet Ispat & Energy Ltd | 5 | 10 |
| Grace Industries | 3 | - | |
| Vraj Metaliks Private Limited | 3 | 1 | |
| Shri Nakoda Ispat Ltd | 2 | 3 | |
| Vandana Global Ltd | 2 | 1 | |
| Shilpy Steels Pvt Ltd | 1 | 2 | |
| Vaswani Industries | 1 | 2 | |
| PD Industry Ltd | - | 4 | |
| Devi Iron & Power Ltd | - | 2 | |
| Rashmi Sponge Iron & Power Ltd | - | 2 | |
| Gopani Iron & Power Ltd. | - | 2 | |
| Drolia Electrosteel Ltd | - | 2 | |
| Agrawal Sponge Ltd. | - | 1 | |
| Phil Ispat | - | 2 | |
| Hi-Tech Power Steel | - | 1 | |
| Real Ispat & Power Ltd | - | 1 | |
| SKS Ispat | - | 7 | |
| Shivalay Ispat & Power Pvt Ltd | - | 4 | |
| Bhagwati Power Steel | - | 2 | |
| Gopal Sponge | - | 1 | |
| Agrawal Structure Mills Pvt Ltd | - | 1 | |
| API Ispat & Power | - | 10 | |
| Aarti Sponge & Power Ltd | - | 2 | |
| MahaMaya Sponge | - | 2 | |
| Mahendra Sponge & Power Ltd | - | 5 | |
| Total | 17 | 70 | |
| NMDC(C.G.) to Other State | Rashtriya Ispat Nigam Ltd | 186 | 140 |
| Kudremukh Iron Ore Company Ltd | 39 | 43 | |
| JSW Steel, Dolvi | 66 | 61 | |
| Sunflag Iron & Steel Company Ltd | 8 | - | |
| Gallant Metal Ltd. | 7 | 4 | |
| Welspun Max Steel Ltd | 5 | 4 | |
| Steel Exchange India Ltd | 3 | 5 | |
| Maha Maya | 3 | 3 | |
| Aloke Steels Industries Pvt.Ltd | 1 | 1 | |
| Noble Tech Industries Ltd. | 1 | - | |
| Total | 319 | 261 | |
| Export | 63 | 52 | |
| Grand Total | 399 | 383 | |
Each rake carries approximately 3,850 MT iron ore
*Excluding Essar Steel's movement through slurry pipeline
Source: SteelMint Research, Railways
