India: NMDC's iron ore rake movement from Chhattisgarh up 10% m-o-m in Mar'22

Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 519 in Mar'22, up 10% against 473 in Feb'22, 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: Rastriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC's iron ore from Chhattisgarh in March. RINL's iron ore sourcing moved up by 11% to 182 rakes in Mar'22 as against 164 in Feb'22.

NMDC's total iron ore rake movements to plants-based outside Chhattisgarh were recorded at 432 last month compared to 379 in February.

JSW Steel recorded a 28% increase in receipt of iron ore rakes from NMDC Chhattisgarh at 154 in Mar'22 against 120 in Feb'22. This could be largely due to expansion of the Dolvi plant from 5 mnt to 10 mnt/year. JSW Steel's standalone crude steel production for Feb'22 was recorded at 1.58 mnt, up 21% y-o-y basis. The average capacity utilisation on expanded capacity was 88%, the utilisation was at 98% excluding Dolvi expansion project.

Southern India-based pellets maker KIOCL sharply decreased iron ore sourcing to 34 rakes in Mar'22 from 76 in Feb'22.

Chhattisgarh-based units source 87 rakes: NMDC's iron ore rake movements to Chhattisgarh-based units were recorded at 87 in Mar'22 compared to 94 a month ago, as per data maintained with SteelMint. However, the figures are still higher compared to the monthly average of 75-80 rakes. Central India-based sponge iron producers showed preference for lump ore from NMDC (Chhattisgarh) due to rising pellets prices.

The two-day nationwide strike of thousands of workers from state-owned SAIL, RINL and NMDC ended on 29 Mar'22. Notably, NMDC's production and dispatches through rakes from both Chhattisgarh and Karnataka were impacted in these two days.

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: Mar'22 vs Feb'22

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