In August 2024, the National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 388 rakes from its Chhattisgarh mines, equivalent to 1.49 million tonnes (mnt) of iron ore. This was a 11% hike as compared to 348 rakes (1.33 mnt) recorded in July, as per BigMint data.
These rake movements are within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through slurry pipeline. Each rake carries around 3,850 t of iron ore.
In August, declining rainfall helped in the smooth functioning of iron ore supplies resulting in easy loading of rakes. Probably decline in iron ore prices for August delivery would be the reason for hike in rake movements. NMDC has declared prices of iron ore fines and lumps for August delivery, which reflect a downtrend.
Iron ore lump (6-40mm, Fe 65.5%) prices are at INR 5,350/t ($64/t), down INR 600/t and fines (-10mm, Fe64%) prices are at INR 4,610/t ($55/t),a drop of INR 500/t. Prices include royalty, DMF and NMET charges.
NMDC’s iron ore production was recorded at 3.07 mnt in August, up by 41% m-o-m as against 2.17 mnt in Jul’24. Iron ore sales also rose by 3% m-o-m to 3.14 mnt in Aug’24 as against 3.06 mnt in Jul’24. Production volumes decreased by 13% y-o-y to 14.43 mnt in Apr-Aug’24 as against 16.56 mnt in the same period of last year.
Sourcing by non-state units increases
JSW Steel, Dolvi emerged as the top buyer, receiving 106 iron ore rakes in August, a decrease of 10% compared with 118 rakes in July.
Rashtriya Ispat Nigam Ltd’s (RINL) iron ore rake movements were recorded at 99 in August, a rise of 36% m-o-m as against 73 rakes in July.
JSPL recorded an increase of 17% in its iron ore rake bookings from NMDC at 28 in August compared to 24 rakes in July.
AM/NS sourced 7 rakes in August, a decline of 61% against 18 rakes in July.
KIOCL, PSU pellet-maker, has suspended its operations from 10 June. The resumption notice is yet to come. However, it sourced 5 rakes in August from NMDC against 7 in July.
Overall, NMDC’s total iron ore rake movements to plants outside Chhattisgarh stood at 283 rakes in August, inched up by 4% against 273 rakes in July.
Sourcing by Chhattisgarh-based units rises: Number of rakes of NMDC carrying iron ore to Chhattisgarh-based units were 105 (0.40 mnt) in August, increase of 40% against 75 rakes (0.29 mnt) in July. In addition, NMDC’s supplies to its Nagarnar plant increased in August to 62 rakes compared to 33 rakes in July.
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