India: NMDC's iron ore rake movements from Chhattisgarh rise nearly 10% m-o-m in Dec'22

Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 390 in December 2022, rising by 9% against 357 in November, according to data maintained with SteelMint.

This figure includes movements within Chhattisgarh and to other state-based units but excludes supply to AM/NS India through slurry pipeline. Notably, a rake carries 3,850 tonnes (t) of iron ore.

RINL top buyer: RINL emerged as the largest buyer, with 136 iron ore rakes received in December, down 14% as against 158 in November.

JSW Steel recorded a hike of 68% m-o-m in receipt of iron ore rakes from NMDC Chhattisgarh at 123 in December as against 73 in November. Trade prices of hot-rolled coil (HRC) have been on the rise for the second consecutive week. Last week's price assessment shows an increase of INR 800/t ($10) in the Mumbai market. Mills are eyeing a price hike for January sales, which has kept trade segment prices buoyant.

South India-based pellet-maker KIOCL's iron ore sourcing stood at 35 rakes in December compared with 25 in November. Indian pellet export trades gained momentum post removal of 45% duty, supported by the recent recovery in global iron ore prices.

NMDC's total iron ore rake movements to plants based outside Chhattisgarh were recorded at 327 last month compared to 295 in November.

Sourcing by Chhattisgarh-based units edges up: NMDC's iron ore rake movements to Chhattisgarh-based units were recorded at 63 in December compared to 62 in the previous month. Supportive market sentiments and the hike in sponge iron and billet prices kept iron ore sourcing from NMDC stable. For instance, the monthly average of SteelMint's billet index was recorded at INR 44,200/t exw Raipur, up INR 1,300/t m-o-m.

Zero exports: NMDC's long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea's POSCO were scrapped as the key sop of 10% reduction in export duty was removed.

NMDC's (Chhattisgarh) iron ore rake movement: Nov'22 vs Dec'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