India: NMDC's iron ore rake movement from Chhattisgarh rises 48% m-o-m in Oct'21

Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 385 in Oct'21, up 48% against 261 in Sept'21, according to data maintained with SteelMint. The figures include movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through slurry pipelines. Notably, a rake carries 3,850 tonnes (t) of iron ore.

RINL largest buyer in Oct'21: Rastriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC's iron ore from Chhattisgarh in October. RINL's iron ore sourcing decreased by 10% to 136 rakes in October as against 151 in September.

NMDC's total iron ore rake movements to plants based outside Chhattisgarh were recorded at 322 last month compared to 225 in September.

JSW Steel recorded a noticeable hike of 141% in receipt of iron ore rakes at 118 in October against 49 in September. In early-October, JSW Steel had lit up its second blast furnace at the Dolvi steelworks in Maharashtra. JSW has completed the expansion of the Dolvi plant from 5 million tonnes (mn t) per year to 10 mn t/year. The expansion included installing a 4.5 mn t/year blast furnace, a 5 mn t steel melting shop, a 5 mn t hot strip mill, apart from a 4 mn t/year pellet plant.

Active price hikes during the month driven by strong demand had a positive impact on mills. Improvement in market sentiments due to festive season resulted in healthy procurement of the material.

Southern India-based pellet maker, KIOCL, increased sourcing to 22 in October from 7 rakes in September.

Gujarat-based plant, Mono Steel India Limited, remained active in sourcing ore from NMDC Chhattisgarh.

Supplies to Chhattisgarh-based units spike by 75%: NMDC's iron ore rake movements to Chhattisgarh-based units were recorded at 63 in October compared to 36 a month ago, as per data maintained with SteelMint. PSU miner NMDC had cut iron ore prices by INR 200-400/tonne (t) for October sales, resulting in active bookings by Chhattisgarh based mills.

Movement for exports nil: NMDC's long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea's POSCO were scrapped as its key sop of a reduced 10% export duty was removed as against the normal 30% paid by private iron ore exporters.
NMDC's (Chhattisgarh) iron ore rake movement: Oct'21 vs Sept'21

Figs exclude ArcelorMittal Nippon Steel India Limited's movement through slurry pipeline

Each rake carries approximately 3,850 t of iron ore

Source: SteelMint Research, Railways