India: NMDC’s iron ore rake movements surge 20% m-o-m in Dec’25

• NMDC’s iron ore production rises 15% m-o-m in Dec’25
• Dispatches to Chhattisgarh-based plants rise by 8% m-o-m

The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 619 rakes from its Chhattisgarh mines in December, equivalent to 2.38 million tonnes (mnt) of iron ore.

This recorded an uptick of 15% compared to 538 rakes (2.07 mnt) in November, as per BigMint data. On a y-o-y basis, December dispatches rose by 20% compared with 515 rakes in December 2024.

NMDC’s rake movements strengthened in December, largely due to strong bookings from RINL and stable dispatches to the NMDC Nagarnar steel plant, driven by limited material availability and volatility in raw material prices. Moreover, increased volumes to JSW Steel, Dolvi helped support the volumes, resulting in overall healthy dispatches.

Notably, 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 5.4 mnt in December, up 14.6% from 5.01 mnt in November.

Sourcing by Chhattisgarh-based units rise 8% m-o-m

NMDC dispatched 198 (0.76 mnt) iron ore rakes to Chhattisgarh-based units in December, an increment of 7.6% as against 184 (0.70 mnt) in November. Specifically, supplies to NMDC’s Nagarnar plant fell by 3% to 100 rakes in December against 103 in November. Also, NMDC’s rake movements to other steelmakers recorded steady growth m-o-m.

In Chhattisgarh, several sponge iron units switched their raw material from pellets to iron ore lumps, which further stabilized rake movement.

Sourcing by units outside Chhattisgarh up 19% m-o-m

Overall, NMDC’s iron ore movements to plants outside Chhattisgarh rose by 18.9% to 421 rakes in December against 354 rakes in November.

Intake by Rashtriya Ispat Nigam Limited (RINL) spiked, emerging as the top buyer in December, receiving 177 rakes against 136 in the previous month. The large steel manufacturer has actively sourced materials from NMDC for its blast furnace, as well as bulk shipments of pellets. This has aided in increasing the dispatch volume to NMDC’s other state-based plants.

Dispatches to KIOCL stood at 67 in December, largely stable compared with 65 in November. KIOCL pellet plant is currently full capacity, selling to the domestic market amid LTA.

Rake movements to Jindal Steel Odisha Limited, received 44 rakes in December against 41 rakes in November.

JSW Steel’s Dolvi plant received 93 iron ore rakes in December with a 16% hike m-o-m, marking a firm demand sentiment of material from the Central-India market.

Outlook

Rake dispatches from NMDC are expected to remain strong in January, driven by high production levels and consistent demand for iron ore. Given the positive outlook for steel prices, miners may increase their material lifting in response to strong demand and the availability of higher-grade iron ore.