- NMDC’s iron ore production rises 11% m-o-m in Sep’25
- Dispatches to Chhattisgarh-based units up 12% m-o-m
NMDC’s iron ore rake dispatches saw a drop in September 2025, amid a prolonged monsoon leading to logistical issues. While dispatch volumes slipped on a monthly basis, they remained higher on a yearly basis.
The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 440 rakes from its Chhattisgarh mines in Sep, equivalent to 1.69 million tonnes (mnt) of iron ore. This was a decline of 6% compared to 469 rakes (1.8 mnt) in Aug, as per BigMint data.
On a yearly basis, September 2025 recorded a 7.8% rise in dispatches compared with 408 rakes in September 2024.
These rake movements were within Chhattisgarh and to other state-based units but excluded supply to AM/NS India through the slurry pipeline. Each rake carries around 3,850 t of iron ore.
Meanwhile, NMDC’s monthly output reached 3.75 mnt in September, up 11.3% from 3.37 mnt in August, making it the company’s best-ever September production and dispatch in the last few years.
Sourcing by Chhattisgarh-based units rises 12% m-o-m
NMDC dispatched 184 (0.71 mnt) iron ore rakes to Chhattisgarh-based units in September, an increase of 12.2% as against 164 (0.63 mnt) in August. However, supplies to NMDC’s Nagarnar plant dipped by 2%, at 98 rakes in September versus 100 in August.
The shift reflected a change in sourcing preferences, with Central India-based players switching towards lump procurement to manage costs amid elevated pellet prices and tight availability. Pellet offers were firm in September due to some export deals and limited availability of iron ore fines, keeping production cost higher.
Sourcing by units outside Chhattisgarh down 16% m-o-m
Overall, NMDC’s iron ore movements to plants outside Chhattisgarh fell by 16.1% to 256 rakes in September against 305 rakes in August. Rake movements to key buyers, Rashtriya Ispat Nigam Limited (RINL) saw a marginal increase, while KIOCL recorded a fall in offtake.
RINL emerged as the top buyer in September, receiving 121 rakes against 109 in the previous month.
Dispatches to KIOCL stood at 55 in September compared with 72 in August. The drop reflects to some domestic deals by the pellet producers in the absence of export tenders in September.
Sources indicate that the rake movement was adjusted, as the dispatch to RINL reflected a decrease in KIOCL sourcing.
JSW Steel, Dolvi, received 32 iron ore rakes in September, down around 45% against 58 in August. The drop was expected due to continuous bulk volumes of imports by the company amid margin protection.
AM/NS India sourced only 2 rakes in September, down by 80% against August bookings. Additionally, Jindal Steel also witnessed a m-o-m decline of 23.9% at 35 rakes for its Odisha-based plants, against 46 rakes the previous month.
Outlook
Rake dispatches from NMDC are expected to improve in October due to better weather conditions. With production already high in September, iron ore dispatches should remain strong this month, reflecting trends from last year and showing improved performance over the past few months.
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