NMDC’s iron ore rake movement from its Chhattisgarh mines to state-based steel units has picked up sharply to 43 rakes in May’20 (0.17 MnT) as against being nil a month ago (in Apr’20), as per railway movement data maintained with SteelMint.
Market participants mentioned that after the price cut announced by NMDC and gradual resumption of plants, iron ore bookings have improved. The miner slashed iron ore fines and lump prices by INR 400/MT and DR CLO by INR 470/MT for the month of May’20, marking the 2nd significant consecutive price cut after Apr’20. In addition to it, amid nationwide lockdown, most of the steel mills in Chhattisgarh remained closed for the month of Apr’20 which resumed production in May’20, thus in turn increasing iron ore procurement.
NMDC has supplied a total of 249 rakes (0.96 MnT) of iron ore in the month of May’20, up 53% against 163 rakes (0.63 MnT) a month before in Apr’20, according to railway movement data maintained with SteelMint.
NMDC’s supplies to outside state-based units increased by 39% in May’20:
The procurement by outside C.G based units picked up for the month by 39% in May’20 to 177 rakes (about 0.68 MnT), against 127 rakes (0.49 MnT) a month ago. JSW Steel (Dolvi) sourcing from NMDC increased sharply to 96 rakes in May’20 against 43 rakes in Apr’20.
KIOCL’s iron ore sourcing from NMDC (C.G) witnessed 51 rakes in May’20, up by 38% as against 37 rakes in Apr’20.
However, RINL’s procurement from NMDC Bailadila mines dropped by 62% on a monthly basis to 18 rakes as compared to Apr’20 procurement at 47 rakes.
Movement for exports dropped by 19% to 29 rakes in May’20 against 36 rakes in Apr’20.
NMDC (C.G.) Iron ore rake movement: Apr’20 vs. Mar’20
| Seller | Buyer | May-20 | Apr-20 |
| NMDC(CG) to Chhattisgarh based Plant | SKS Ispat | 7 | – |
| Monnet Ispat & Energy Ltd | 5 | – | |
| API Ispat & Power | 5 | – | |
| Ghankun Steel Pvt. Ltd. | 4 | – | |
| Jindal Steel & Power Ltd | 4 | – | |
| Devi Iron & Power Ltd | 3 | – | |
| Nutan Ispat & Power Ltd. | 2 | – | |
| Shilpy Steels Pvt Ltd | 2 | – | |
| Rashmi Sponge Iron & Power Ltd | 2 | – | |
| Vaswani Industries | 1 | – | |
| Drolia Electrosteel Ltd | 1 | – | |
| Gopani Iron & Power Ltd. | 1 | – | |
| Hi Tech Power Steel | 1 | – | |
| Vandana Global Ltd | 1 | – | |
| Agrawal Sponge Ltd. | 1 | – | |
| Vraj Metaliks Private Limited | 1 | – | |
| Aarti Sponge & Power Ltd | 1 | – | |
| Shri Nakoda Ispat Ltd | 1 | – | |
| Total | 43 | 0 | |
| NMDC(C.G.) to Other State | Kudremukh Iron Ore Company Ltd | 51 | 37 |
| Rastriya Ispat Nigam Ltd | 18 | 47 | |
| JSW Steel, Dolvi | 96 | 43 | |
| Steel Exchange India Ltd | 4 | – | |
| Maha Maya | 4 | – | |
| Welspun Max Steel Ltd | 2 | – | |
| Gallant Metal Ltd. | 1 | – | |
| Jindal Steel & Power Ltd | 1 | – | |
| Total | 177 | 127 | |
| Export | 29 | 36 | |
| Grand Total | 249 | 163 | |
Each rake carries approximately 3,850 MT iron ore
*Excluding Essar Steel’s movement through slurry pipeline
Source: SteelMint Research, Railways
Leave a Reply