- Supplies to NMDC Nagarnar plant increase by 16%
- KIOCL’s procurement rises amid active pellet demand
The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 531 rakes from its Chhattisgarh mines in August 2026, equivalent to 2.04 million tonnes (mnt) of iron ore. This marks a marginal increase of 2.5% from 518 rakes (1.99 mnt) in July, as per BigMint data. Meanwhile, y-o-y, dispatches in August surged by 22% compared with 437 rakes in August 2025.
The marginal m-o-m rise in dispatches can be attributed to stable production during the monsoon. NMDC’s cumulative iron ore production rose 26% y-o-y to 23.23 mnt during April-August 2026, from 18.45 mnt in the corresponding period last year, according to the company’s latest exchange filing. In contrast, cumulative sales increased only 2% y-o-y to 18.72 mnt from 18.37 mnt, showing a significant divergence between output and sales during the period.
Meanwhile, monthly production remained broadly stable m-o-m at 4.07 mnt in August, compared with 4.06 mnt in July. However, output was 21% higher y-o-y than 3.37 mnt in August 2025. Monthly sales increased 5% m-o-m to 3.58 mnt from 3.40 mnt in July. Y-o-y, sales rose 6% from 3.39 mnt in August 2025.
Notably, these volumes are for rake movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through the slurry pipeline. Each rake carries around 3,850 t of iron ore.
Sourcing by Chhattisgarh-based units falls
NMDC dispatched 159 (0.61 mnt) iron ore rakes to Chhattisgarh-based units in August, a drop of 1.9% as against 162 (0.62 mnt) in July. Supplies to its own Nagarnar-based facility increased 16%, with 113 rakes in August against 97 rakes in July 2026. Moreover, dispatches to other state-based plants declined 29% m-o-m.
Meanwhile, the regional steel market remained firm. Raipur direct-reduced iron (DRI) CLO-based sponge iron prices increased by around INR 2,900/t ($30-31/t) m-o-m to INR 30,920/t ($327.6/t) in August from INR 28,000/t ($296.6/t) in July. The sharp rise was supported by improved demand for finished and semi-finished steel, which strengthened margins for sponge iron producers and supported raw material demand.
Sourcing by units outside Chhattisgarh rises by 4% m-o-m
Overall, NMDC’s iron ore movements to plants outside Chhattisgarh rose by 4.5% to 372 rakes in August against 356 in the previous month.
Intake by Rashtriya Ispat Nigam Limited (RINL), the leading buyer, fell by 6.3% to 133 rakes against 142 in the previous month, with the steelmaker procuring material from other sources as well.
Iron ore rakes to JSW Steel’s Dolvi plant in August fell by 6.2% to 76 rakes against 81 rakes in the previous month. JSW Steel made some bookings from the Odisha and Maharashtra merchant markets, which led to the drop in procurement from NMDC, BigMint understands.
In contrast, dispatches to KIOCL rose sharply to 85 rakes in August from 58 rakes in July. The increase was supported by healthy procurement requirements for pellet manufacturing and active shipment activity during the month.
Dispatches to ArcelorMittal Nippon Steel India Limited (AM/NS) fell by 24% to 28 rakes this month against 37 rakes in July.
Outlook
NMDC’s rake movements are expected to remain subdued in September as continued monsoon activity could disrupt mining and logistics, while buyers may remain cautious amid preference for lumps. However, firm sponge iron prices and healthy demand for finished and semi-finished steel could support iron ore procurement once rainfall eases and operating conditions improve.
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