India: NMDC's iron ore rake movements from Chhattisgarh drop 6% m-o-m in Nov'21

Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 361 in Nov'21, down 6% against 385 in Oct'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 Nov'21: Rastriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC's iron ore from Chhattisgarh in November. RINL's iron ore sourcing increased by 15% to 157 rakes in November as against 136 in October.

NMDC's total iron ore rake movements to plants based outside Chhattisgarh were recorded at 279 last month compared to 322 in October.

JSW Steel recorded a sharp 47% decline in receipt of iron ore rakes from NMDC Chhatisgarh at 63 in November against 118 in October. This could be largely due to increased production from JSW's captive mines. The company's output from Odisha-based captive mines increased to 2.34 million tonnes (mn t) in Oct'21 from 1.89 mn t in Sep'21.

Southern India-based pellets maker KIOCL reduced iron ore sourcing to 15 rakes in November from 22 in October. The Karnataka-based company had been under shutdown in October and the news of resumption of production by the company arrived in November.

Supplies to Chhattisgarh-based units up 30%: NMDC's iron ore rake movements to Chhattisgarh-based units were recorded at 82 in November compared to 63 a month ago, as per data maintained with SteelMint. PSU miner NMDC has kept iron ore prices unchanged for Nov'21 deliveries, 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: Nov'21 vs Oct'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