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India: NMDC's iron ore rake movements drop 4% m-o-m in Dec'24

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BigMint Bureau

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2 Jan 2025, 18:30 IST

India: NMDC's iron ore rake movements drop 4% m-o-m in Dec'24

NMDC's iron ore sales down m-o-m in December

Sourcing by non-state units drop slightly m-o-m

National Mineral Development Corporation (NMDC), India's largest iron ore miner, dispatched 515 rakes from its Chhattisgarh mines in December 2024, equivalent to 1.98 million tonnes (mnt) of iron ore. This was a 4% drop compared to 539 rakes (2.07 mnt) in November, as per BigMint data.

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

Sourcing by non-state units fall

Overall, NMDC's iron ore movements to plants outside Chhattisgarh were fell slightly by 354 rakes in December against 361 in November. The decline in sponge iron prices, coupled with shrinking profit margins, has led to reduced procurement from NMDC by sponge iron manufacturers.

Rashtriya Ispat Nigam Limited (RINL) emerged as the top buyer in December, receiving 171 rakes against 175 booked in the previous month.

JSW Steel, Dolvi, received 51 iron ore rakes in December, a fall of 33% compared with 76 in November.

JSPL recorded a decrease of 26% in its iron ore rake bookings from NMDC, at 47 in December compared to 64 in November.

The monthly average trade-level hot-rolled coil (HRC, 2.5-8mm / CTL, IS2062, Gr- E250 Br.) prices registered a decline in December 2024, dropping by approximately INR 1,200/t ($14/t) to INR 46,900/t ($547/t) as against November's INR 48,100/t ($561/t) exy-Mumbai. Following the initiation of the safeguard investigation by the government, the market witnessed a surge in offers. However, as time progressed, these higher prices failed to gain traction. Buyer resistance emerged, with transactions primarily limited to small volumes at the lower end of the price range, exerting downward pressure on prices.

AM/NS sourced 30 rakes in December against 12 in November, recording a significant rise of 150%.

Sourcing by Chhattisgarh-based units decreases

NMDC dispatched 161 (0.61 mnt) iron ore rakes to Chhattisgarh-based units in December, a drop of 9% against 178 (0.69 mnt) in November. Additionally, NMDC's supplies to its Nagarnar plant decreased in December to 119 rakes compared to 127 in November.