India: NMDC's iron ore rake movements rise nearly 10% m-o-m in Jan'25

• NMDC's iron ore output up 8% m-o-m in Jan'25
  
  
• Sourcing by non-state units rises 9% m-o-m
  
  

The National Mineral Development Corporation (NMDC), India's largest iron ore miner, dispatched 559 rakes from its Chhattisgarh mines in January 2025, equivalent to 2.15 million tonnes (mnt) of iron ore. This was a 9% hike compared to 515 rakes (1.98 mnt) in December, as per BigMint data.

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

Notably, NMDC's iron ore production volumes touched 5.10 mnt in January, up 8% against 4.71 mnt in December. Meanwhile, iron ore sales increased by 15% to 4.48 mnt in January as against 3.91 mnt in December.

Sourcing by units outside Chhattisgarh rises

Overall, NMDC's iron ore movements to plants outside Chhattisgarh rose by 9% to 387 rakes in January against 354 in December.

Rashtriya Ispat Nigam Limited (RINL) emerged as the top buyer in January, receiving 150 rakes against 171 booked in the previous month, a decrease of 12%. Weaker steel market sentiments and fall in rebar prices may have resulted in the drop in iron ore procurement.

JSW Steel, Dolvi, received 69 iron ore rakes in January, a rise of 35% as compared with 51 in December.

KIOCL recorded an increase of 67% in its iron ore rake bookings from NMDC, at 55 in January compared to 33 in December. Pick up in export sentiments amidst restocking needs ahead of CNY resulted in increased iron ore procurement.

AM/NS sourced 43 rakes in January against 30 rakes in December, up 43% m-o-m.

Increased sourcing by Chhattisgarh-based units

NMDC dispatched 172 (0.66 mnt) iron ore rakes to Chhattisgarh-based units in January, an increase of 7%, as against 161 (0.62 mnt) in December. Stability in sponge iron prices and lower iron ore prices boosted procurement. NMDC decreased list prices of iron ore CLO (calibrated lump ore) and fines on 9 January by INR 350/tonne (t).

However, NMDC's supplies to its Nagarnar plant in the state dropped in January to 93 rakes compared to 119 in December.