In April 2024, the National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 488 rakes from its Chhattisgarh mines, equivalent to 1.87 million tonnes (mnt) of iron ore. This denotes a 15% fall compared to the 573 rakes (2.2 mnt) recorded in March, as per BigMint data. These rake movements encompassed movements within Chhattisgarh and to other state-based units, excluding supply to AM/NS India through slurry pipeline. It’s worth noting that each rake carries 3,850 t of iron ore.
NMDC recorded output at 3.48 mnt in April, 2024, largely stable y-o-y as against 3.51 mnt in April, 2023. However, production volumes dropped m-o-m by 28% against 4.86 mnt in March, 2024. Iron ore sales went up marginally by 3% y-o-y to 3.53 mnt in April, 2024 as against 3.43 mnt in the year-ago period.
Major buyers likely purchased less material as they had already secured a sufficient amount towards the end of the financial year in March. Additionally, the market’s uncertainty and volatility in the first half of April led buyers to limit their purchases.
Sourcing by non-state based units decreases m-o-m:
Rashtriya Ispat Nigam Ltd (RINL) emerged as the top buyer, with an 11% decrease in iron ore rake movements m-o-m from NMDC Chhattisgarh. In March, RINL received 164 rakes compared to 185 rakes in March.
JSW Steel recorded 82 iron ore rakes in April, a fall of 36% as compared with 129 rakes in March.
AM/NS sourced 45 rakes in April, inching up against 41 in March.
KIOCL, a south India-based pellet maker, contributed by sourcing one rake in April against four rakes in March. The company has suspended operations amid subdued export market sentiments since 24 February. The suspension was undertaken amid the ongoing downtrend in the pellets market.
However, JSPL significantly increased its iron ore rake bookings from NMDC at 44 in April, compared to just 32 in March.
Overall, NMDC’s total iron ore rake movements to plants outside Chhattisgarh reached 382 in April, reflecting a 12% decline against 436 recorded in March.
Sourcing by Chhattisgarh-based units drops: The number of rakes by NMDC carrying iron ore to Chhattisgarh-based units totalled 106 rakes (0.41 mnt) in April, marking a 23% decrease from 137 rakes (0.53 mnt) recorded in March. In addition, NMDC’s supplies to its Nagarnar plant decreased in April, at 62 rakes compared to 98 in March. Apart from NMDC’s own unit, rake movements recorded an increase in other units of Chhattisgarh by around 15% to 45 rakes in April compared to 39 rakes in March.
NMDC Chhattisgarh increased list prices of iron ore fines and calibrated lump ore on 27 April by INR 200-300/t, for May delivery. The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 7,270/t and of iron ore fines (-10mm, Fe64%) at INR 5,260/t (on FoR basis from its Bacheli complex). Prices include royalty, DMF and NMET charges.
