Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 394 in Dec’21, up 9% against 361 in Nov’21, according to data maintained with SteelMint. The figures include movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through slurry pipelines. Notably, a rake carries 3,850 tonnes (t) of iron ore.
RINL largest buyer in Dec’21: Rastriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC’s iron ore from Chhattisgarh in December. RINL’s iron ore sourcing increased by 20% to 189 rakes in December as against 157 in November. The reason could be an increase in crude steel production to 0.43 mn t in Dec’21 against 0.39 mn t a month ago on the robust outlook in the finished long segment.
NMDC’s total iron ore rake movements to plants based outside Chhattisgarh were recorded at 301 last month compared to 279 in November.
JSW Steel recorded a 24% increase in receipt of iron ore rakes from NMDC Chhattisgarh at 78 in December against 63 in November. This could be largely due to expansion of the Dolvi plant from 5 mn t to 10 mn t/year. The expansion included installation of a 4.5 mn t/year blast furnace, a 5 mn t steel melting shop, a 5 mn t hot strip mill, apart from a 4 mn t/year pellet plant. JSW’s standalone crude steel production guidance for FY’22 is 18.5 mn t.
Southern India-based pellets maker KIOCL reduced iron ore sourcing to 7 rakes in December from 15 in November.
Supplies to Chhattisgarh-based units up 13%: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 93 in December compared to 82 a month ago, as per data maintained with SteelMint.
Sourcing by Chhattisgarh-based units increases: A conveyor belt caught fire at NMDC’s iron ore Deposit 5 in Chhattisgarh on 1 Dec’21. The incident and subsequent damage caused affected the production of iron ore for around four days. However, mineral despatches continued normally and active bookings were seen later.
Movement for exports nil: NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO were scrapped as its key sop of a reduced 10% export duty was removed as against the normal 30% paid by private iron ore exporters.
NMDC’s (Chhattisgarh) iron ore rake movement: Dec’21 vs Nov’21
Figs. exclude ArcelorMittal Nippon Steel India Limited’s movement through slurry pipeline
Each rake carries approximately 3,850 t of iron ore
Source: SteelMint Research, Railways
PSU miner NMDC cut iron ore prices last week by INR 300-500/t for Jan’22 deliveries. Fines prices witnessed a comparatively sharper correction than lumps. After price cut, the miner’s fines offer hit over one-year lows. This is likely to boost DR-CLO bookings as sponge players may prefer DR CLO over pellets, considering cost-effectiveness. Offers from Raipur-based players are at INR 10,700-11,000/tonne (t) exw.
Iron ore rake movements in CY’21 vs CY’20 highlights:
- The total iron ore rake movements from Chhattisgarh were recorded at 4,634 in CY’21, up by 20% against 3,864 in CY’20.
- Rastriya Ispat Nigam Limited (RINL) was the largest buyer at 2,052 in CY’21, recording a sharp increase of 53% against 1,342 in the CPLY.
- JSW Steel Ltd. recorded the second-highest iron ore rake movements at 766, followed by KIOCL at 478 in CY’21.
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