India: NMDC's iron ore rake movements from Chhattisgarh rise 18% m-o-m in Mar'24

In March 2024, the National Mineral Development Corporation (NMDC), India's largest iron ore miner, dispatched 573 rakes from its Chhattisgarh mines, equivalent to 2.2 million tonnes (mnt) of iron ore. This denotes a 18% hike compared to the 487 rakes (1.87 mnt) recorded in February, as per BigMint data. These rake movements encompass movements within Chhattisgarh and to other state-based units, excluding supply to AM/NS India through slurry pipeline. It's worth noting that each rake carries 3,850 t of iron ore.

NMDC has recorded iron ore production of 45.10 mnt in FY'24, an increase of 10% y-o-y. Sales rose by 16% to 44.5 mnt. Monthly output stood at 4.86 mnt in March, an increase of 19% m-o-m. However, iron ore sales fell marginally by 1% m-o-m to 3.96 mnt in March as against 3.99 mnt in February.

Sourcing by non-state based units increase m-o-m:

Rashtriya Ispat Nigam Ltd (RINL) emerged as the top buyer, with a 21% increase in iron ore rake movements m-o-m from NMDC Chhattisgarh. In March, RINL received 185 rakes compared to 138 in February. RINL registered exceptional steel production performance in FY'24. The company achieved hot metal production of 4.7 mnt during the period.

JSW Steel recorded 129 iron ore rakes in March, a rise of 22% as compared with 106 rakes in February.

AM/NS was supplied 41 rakes in March, a significant hike against 10 in February. KIOCL, a south India-based pellet maker, witnessed a significant drop of 92% in sourcing, recording four rakes in March compared to 48 in February. The company has suspended operations amid subdued export market sentiments since 24 February. The suspension was undertaken amid the ongoing downward trend in the pellets market. Notably, some tenders - via road and sea routes - have also been floated for domestic buyers.

However, JSPL significantly increased its iron ore rake bookings from NMDC at 32 in March, compared to just 21 in February. JSPL recently commissioned its 5.5-mntpa hot strip mill at Angul from where some consignments were already booked. Around 120,000 t are expected per month soon.

Overall, NMDC's total iron ore rake movements to plants outside Chhattisgarh reached 436 in March, reflecting an 19% rise from 366 recorded in February.

Sourcing by Chhattisgarh-based units rise: The number of rakes by NMDC carrying iron ore to Chhattisgarh-based units totalled 137 (0.53 mnt) in March, marking a 13% increase from 121 (0.46 mnt) recorded in February. In addition, NMDC's supplies to its Nagarnar plant increased in March, at 98 rakes compared to 59 in February owing to an increase in HRC production. Apart from NMDC's own unit, rake movements came down sharply to other units of Chhattisgarh by around 59% to 39 rakes in March compared to 62 rakes in February.

NMDC Chhattisgarh decreased list prices of iron ore fines and calibrated lump ore on 21 March by INR 200-250/t, BigMint learnt from sources. The company's prices are effective from 21 March. The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 6,970/t and of iron ore fines (-10mm, Fe64%) at INR 5,060/t (on FoR basis from its Bacheli complex). Prices include royalty, DMF and NMET charges.