India: NMDC’s iron ore rake movements dip 10% m-o-m in Jun’21

Government-owned miner NMDC’s total iron ore rake movements from Chhattisgarh were recorded at 341 in Jun’21, against 377 in May’21. The figures include movements to Chhattisgarh as well as other state-based units but exclude AM/NS India’s movement through slurry pipelines.

NMDC resumed operations in three shifts from Jun’21 compared to the previous two shifts in May due to lockdown restrictions. However, even after the resumption of full operations, the onset of the monsoon and fog are likely to impact production.

Supplies to Chhattisgarh-based units largely stable: NMDC’s iron ore rake movements to Chhattisgarh-based mines were recorded at 55 in Jun’21 compared to 57 a month ago, as per the data maintained with SteelMint.

Meanwhile, Federation of Indian Chambers of Commerce (FICCI), on behalf of Chhattisgarh-based iron ore-dependent industries, has urged the state government to implement a pre-emption policy.

Supplies to other state-based units fall in Jun’21: NMDC’s iron ore rake movements to other state-based units were recorded at 286 in Jun’21 compared to 320 in May’21.

•  RINL procured 140 rakes in Jun’21 against 180 in May’21. Sluggish demand due to lockdown restrictions impacted sales which in turn may have resulted in lower iron ore procurement.
•  Goa-based pellet maker Chowgule and Company procured six rakes in Jun’21 as against three a month ago.
•  West Bengal-based Rashmi Metaliks Ltd procured three rakes from NMDC in Jun’21 as against two in May’21. Amidst higher Odisha iron ore prices and tighter merchant availability, the company had participated in NMDC’s auctions.

Movement for exports continue to remain nil: Government-owned miner NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO have been scrapped as its key sop of a reduced 10% export duty has been removed as against the normal 30% paid by private iron ore exporters.

NMDC’s (C.G.) iron ore rake movement: Jun’21 vs May’21

* Excluding Arcelormittal Nippon Steel India Limited’s movement through slurry pipeline

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