NMDC (Chhattisgarh) iron ore rake movement to state-based steel units remain nil in the month of Apr’20 against 11 rakes in Mar’20, according to railway movement data maintained with SteelMint. This does not include movement through road.
Amid nationwide lockdown, most of the steel mills in C.G remained closed last month. Few mills have started operation towards the mid of last month with the reduced production capacity. As per the sources, most of the steel mills have sufficient iron ore inventory for the next few days.
NMDC’s supplies to outside state-based units decreased by 62% in Apr’20:
The procurement by outside C.G based units down for the month by 62% in Apr’20 to 127 rakes (about 0.49 MnT), decreased sharply against 332 rakes (1.28 MnT) a month ago.
RINL’s procurement from NMDC Bailadila mines receded by 74% on a monthly basis to 47 rakes as compared to Mar’20 procurement at 182 rakes.
JSW Steel (Dolvi) sourcing from NMDC was down sharply by 58% to 43 rakes in Apr’20 against 103 rakes in Mar’20.
However, KIOCL’s iron ore sourcing from NMDC (C.G) has increased by 23% to 37 rakes in Apr’20 as against 30 rakes in Mar’20.
Movement for exports increased marginally to 36 rakes in Apr’20 against 35 rakes in Mar’20.
NMDC Ltd- India’s biggest iron ore producer had sharply reduced iron ore prices at the beginning of last month. Prices of Baila fines and lump were reduced by INR 500/MT and DR CLO by INR 580/MT.
NMDC has supplied a total of 163 rakes (0.63 MnT) of iron ore in the month of Apr’20, down 57% against 378 rakes (1.46 MnT) a month before in Mar’20, according to railway movement data maintained with SteelMint.
NMDC (C.G.) Iron ore rake movement: Apr’20 vs. Mar’20
| Seller | Buyer | Apr’20 | Mar’20 |
| NMDC(CG) to Chhattisgarh based Plant | Monnet Ispat & Energy Ltd | – | 3 |
| Shri Nakoda Ispat Ltd | – | 3 | |
| Aarti Sponge & Power Ltd | – | 2 | |
| Vraj Metaliks Private Limited | – | 1 | |
| Vandana Global Ltd | – | 1 | |
| Grace Industries | – | 1 | |
| Total | 0 | 11 | |
| NMDC(C.G.) to Other State | Rashtriya Ispat Nigam Ltd | 47 | 182 |
| Kudremukh Iron Ore Company Ltd | 37 | 30 | |
| JSW Steel, Dolvi | 43 | 103 | |
| Steel Exchange India Ltd | – | 4 | |
| Gallant Metal Ltd. | – | 5 | |
| Sunflag Iron & Steel Company Ltd | – | 3 | |
| Welspun Max Steel Ltd | – | 2 | |
| Maha Maya | – | 3 | |
| Total | 127 | 332 | |
| Export | 36 | 35 | |
| Grand Total | 163 | 378 | |
Each rake carries approximately 3,850 MT iron ore
*Excluding Essar Steel’s movement through slurry pipeline
Source: SteelMint Research, Railways
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