Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 473 in Feb’22, inching down 4% against 491 in Jan’22, 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’s sourcing falls as its BF undergoes shutdown: Rastriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC’s iron ore from Chhattisgarh in February. However, its iron ore sourcing moved down by 8% to 164 rakes in Feb’22 as against 179 in Jan’22. SteelMint had reported in end Feb’22 that as most steel mills grapple with coking coal supply challenges, Rashtriya Ispat Nigam Limited (RINL) too is facing sourcing issues. This scenario is keeping its third blast furnace from resuming operations, it seems.
NMDC’s total iron ore rake movements to plants based outside Chhattisgarh were recorded at 379 last month compared to 388 in January.
JSW Steel recorded a 13% increase in receipt of iron ore rakes from NMDC Chhattisgarh at 119 in Feb’22 against 105 in Jan’22. This could be largely due to expansion of the Dolvi plant from 5 mnt to 10 mnt/year. JSW Steel’s standalone crude steel production for Jan’22 was recorded at 1.65 mnt, up 15% y-o-y basis. The expansion project at Dolvi works, which commenced commercial operations in November last year, is gradually ramping up capacity utilisation.
Southern India-based pellets maker KIOCL’s iron ore sourcing stood stable at 76 rakes in Feb’22 as against Jan’22. It is to be noted that the company’s pellet plant had been under shutdown in Oct’21 and the news of resumption of production by the company was received in November.
Supplies to Chhattisgarh-based units remain supported: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 94 in Feb’22 compared to 103 a month ago, as per data maintained with SteelMint. However, the number is still higher compared to the monthly average of 75-80 rakes.
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: Feb’22 vs Jan’22
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
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