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India: NMDC's iron ore rake movements rise nearly 25% m-o-m

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Fines/Lumps

BigMint Bureau

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5 Nov 2024, 15:24 IST

India: NMDC's iron ore rake movements rise nearly 25% m-o-m

NMDC's supplies to Chhattisgarh-based units up over 40%

PSU miner's ore production inches up by around 35% m-o-m

The National Mineral Development Corporation (NMDC), India's largest iron ore miner, dispatched 506 rakes from its Chhattisgarh mines, equivalent to 19.48 million tonnes (mnt) of iron ore in October 2024. This was a 24% hike compared to 408 rakes (1.57 mnt) in September, as per BigMint data.

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

Notably, NMDC's iron ore production volumes touched 4.07 mnt in October, up 34% against 3.04 mnt in September. Meanwhile, iron ore sales rose 14% to 4.03 mnt in October as against 3.52 mnt in September.

Last month, pellet offers increased sharply which led buyers to show more interest in buying NMDC's iron ore lumps to secure better margins. However, towards the end of the last week of October, NMDC also hike iron ore offers.

Sourcing by non-state units up

Overall, NMDC's iron ore rake movements to plants outside Chhattisgarh up by 17% to 334 rakes in October against 286 rakes in September.

Rashtriya Ispat Nigam Limited (RINL) emerged as the top buyer in October, receiving 135 rakes against 117 rakes booked in the previous month, a hike of 15%.

JSW Steel, Dolvi, received 103 iron ore rakes in October, a rise of 3% as compared with 100 rakes in September.

JSPL and Jindal Steel Odisha Limited recorded an increase of 32% in their iron ore rake bookings from NMDC, at 29 rakes each in October compared to 22 rakes each in September.

AM/NS sourced two rakes in October against 10 rakes in September.

Sourcing by Chhattisgarh-based units rises

NMDC dispatched 172 (0.66 mnt) iron ore rakes to Chhattisgarh-based units in October, a rise of 41% against 122 (0.47 mnt) in September. Additionally, NMDC's supplies to its Nagarnar plant increased in October to 105 rakes compared to 75 rakes in September.

Outlook

It is expected that rake movements will rise further in the coming months on anticipated demand recovery in the third quarter of current financial year.