India: NMDC's iron ore rake movements rise 9% m-o-m in May'26

• Chhattisgarh sourcing up 3% amid buyers' preference for lumps
  
  
• Procurement by buyers in other states rises by 11% m-o-m
  
  

The National Mineral Development Corporation (NMDC), India's largest iron ore miner, dispatched 631 rakes from its Chhattisgarh mines in May 2026, equivalent to 2.43 million tonnes (mnt) of iron ore.

The number of rakes dispatched rose around 9% compared to 631 rakes (2.43 mnt) in May, as per BigMint data. On a y-o-y basis, dispatches in May surged by 11% compared with 566 rakes in May 2025.

NMDC's rake movements increased due to healthy production volumes and demand from producers based in other states. Sourcing by other buyers from Odisha, Karnataka, and Gujarat rose substantially, which helped increase volumes.

Notably, these volumes are for rake movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through the slurry pipeline. Each rake carries around 3,850 t of iron ore.

Meanwhile, NMDC's monthly iron ore output touched 5.31 mnt in May, rising by 14% from 4.64 mnt in April. Monthly sales increased by 10% to 4.04 mnt in May against 3.68 mnt in April.

Sourcing by Chhattisgarh-based units edges up

NMDC dispatched 172 (0.66 mnt) iron ore rakes to Chhattisgarh-based units in May, an uptick of 3% as against 167 (0.64 mnt) in April. Supplies to its own Nagarnar-based facility recovered slightly to 89 rakes in May against 80 rakes in April 2026 (Volumes had dropped 44% against 143 rakes in April due to pre-maintained high inventories). Moreover, dispatches to other state-based plants remained largely stable m-o-m.

In Chhattisgarh, demand for lumps remained active as buyers preferred lumpy ore over pellets to optimise costs against weakening sponge iron prices. Procurement dynamics also evolved, with plants increasingly sourcing material from Maharashtra and Odisha, as these supplies entered the Raipur and Raigarh markets at more competitive prices.

Sourcing by units outside Chhattisgarh increases by 11% m-o-m

Overall, NMDC's iron ore movements to plants outside Chhattisgarh increased around 11% to 459 rakes in May against 412 in the past month.

Intake by Rashtriya Ispat Nigam Limited (RINL), the leading buyer, increased by 11% to 178 rakes against 160 in the previous month.

Iron ore rakes to JSW Steel's Dolvi plant in May remained largely stable m-o-m at 114 rakes against 110 rakes in the previous month. Preference for higher-grade NMDC iron ore was maintained healthy for blending, but higher running inventories kept aggressive buying on hold.

Dispatches to KIOCL rose by 62.5% m-o-m to 13 rakes in May against 8 rakes in April, primarily due to expectations of some recovery in the pellet export market, which prompted a slight rise in intake.

Jindal Steel Odisha Limited received 61 rakes in May against 48 rakes in April.

Outlook

NMDC's iron ore rake movements are expected to increase in May amid restocking demand from steel mills due to the approaching monsoon. However, continued preference for lumps may keep dispatches supported.