NMDC’s iron ore rake movement from its Chhattisgarh mines to state-based steel units has picked up to 11 rakes (42,350 MT) in May’20 (till 17th May), as per railway movement data maintained with SteelMint. Major buyers include API Ispat Power, SKS, Monnet Ispat.
Market participants mentioned that after the recent price cut announced by NMDC and gradual resumption of plants, iron ore bookings have improved.
Last month in Apr’20 iron ore rake movement to C.G state-based steel units was remained nil. Amid nationwide lockdown, most of the steel mills in C.G remains closed last month. Few mills have started operation towards the mid of last month with the limited production capacity.
Notably, NMDC slashed iron ore fines and lump prices by INR 400/MT and DR CLO by INR 470/MT for the month of May’20, marking the 2nd significant consecutive price cut after Apr’20.
NMDC’s iron ore supplies to outside state-based units decreased by 24%:
The procurement by outside C.G based units down till the 17 May’20 by 24% to 68 rakes ( 0.26 MnT), against 90 rakes (0.35 MnT) in the timeframe last month.
JSW Steel (Dolvi) sourcing from NMDC nearly doubled to 40 rakes in May (till 17th ) against 23 rakes in a similar time frame last month.
KIOCL sourcing from NMDC (C.G) seems to be stable with 22 rakes till 17th May’20 as against 23 rakes last month in the same time span.
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