NMDC’s iron ore rake movement from its Chhattisgarh mines to state-based steel units has picked up 21% to 52 rakes in June’20 (0.20 mn t) as against 43 rakes a month ago (0.17 mn t), as per railway movement data maintained with SteelMint.
NMDC had reduced iron ore prices by 17% each in April and May respectively and left prices unchanged in June which improved buying interest. In addition to it, mills improved their steel capacity utilization, resulting in increased iron ore procurement. The decline in sponge iron prices and high pellet offers, shifted steel mills interest towards NMDC iron ore for better cost effectiveness.
There was some disturbance in its iron ore dispatches, loading activities were hampered since 12 June when the state government had disallowed NMDC to use its loading facilities to store iron ore prior to dispatching them in wagons, claiming that the company was storing iron ore offsite, a claim NMDC disputes. NMDC was able to send iron ore only through its slurry pipeline and load it on wagons without prior storage from 12-18 June. NMDC resumed normal dispatches at its Bacheli iron ore mining complex in the state of Chhattisgarh since 19th June’20. The miner had continued to mine iron ore at the complex despite the halt in loadings.
NMDC has supplied a total of 281 rakes (1.08 mn t) of iron ore in the month of June’20, up 13% against 249 rakes (0.96 mn t) a month before in May’20, according to railway movement data maintained with SteelMint.
NMDC’s supplies to outside state-based units increased by 12% in June 20:
The procurement by outside C.G based units picked up for the month by 12% in June’20 to 199 rakes (about 0.77 mn t), against 177 rakes (0.68 ,mn t) a month ago. JSW Steel (Dolvi) sourcing from NMDC decreased by 30% to 67 rakes in June’20 against 96 rakes in May’20.
However, RINL’s procurement from NMDC Bailadila mines increased significantly on a monthly basis to 63 rakes as compared to May’20 procurement at 18 rakes.
KIOCL’s iron ore sourcing from NMDC (C.G) witnessed 51 rakes in June’20, stable m-o-m.
Movement for exports picked up slightly to 30 rakes in June’20 against 29 rakes in May’20.
NMDC (C.G.) Iron ore rake movement: June’20 vs. May’20
Each rake carries approximately 3,850 t iron ore
*Excluding Essar Steel’s movement through slurry pipeline
Source: SteelMint Research, Railways
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