NMDC Chhattisgarh Iron Ore Rake Movement Fell 14% M-o-M in Apr'18

• Outside state-based units procurement from NMDC decreased by 5%
• Sourcing from within state based units increased by 10%
• Movement for exports declined to nil as LTA with Japan & South Korea expired on 31 Mar’18

India's largest iron ore miner, NMDC supplied 317 rakes of iron ore in Apr'18, decreased by 14% as against supply in Mar'18, recorded at 367 rakes. Earlier in the beginning of April NMDC roll over prices i.e. in line with Mar'18 prices but later in the month decreased its prices by INR 100-110/MT for rest of the month deliveries.

C.G. based unit’s procurement increased by 10% in Apr'18: Procurement of NMDC iron ore by Chhattisgarh based units increased at 45 rakes in Apr'18 as against 41 rakes in Mar'18 by units within the state. However, it observes that from the last few month procurements has been in the lower side as usually, CG based units procure 65-70 rakes of iron ore every month from NMDC, Chhattisgarh.

Procurement by outside C.G based units decreased by 5%: The procurement by outside units of C.G has decreased by 5% M-o-M to 272 rakes in Apr'18 as against 286 rakes in Mar'18.

RINL has increased iron ore sourcing from NMDC Bailadila mines by 5% M-o-M in Apr'18 to 187 rakes as compared to 178 rakes in Mar'18. JSW Steel, Dolvi sourcing from NMDC decreased by 18% in Apr'18 to 49 rakes as against 60 rakes in Mar '18.
KIOCL loaded 20 iron ore rakes from NMDC in Apr'18, against 37 rakes in Mar'18.

Movement for Exports declined to nil:

No movement for iron ore exports reported in Apr'18 against 40 rakes in Mar'18.
NMDC's LTA for supply of iron ore through MMTC ended on 31 Mar’18. Later on 25th Apr'18, Indian govt renewed long term trade agreement for supply of iron ore to South Korea & Japan through MMTC for a period of 5 years ending 31 Mar'22.

Each rake carries approximately 3,850 MT iron ore
Source: SteelMint Research, Railways