Government-owned miner, NMDC, recorded iron ore rake movements from Chhattisgarh at 339 in Jul’21, against 341 in Jun’21. The figures include movements to Chhattisgarh as well as other state-based units but exclude AM/NS India’s movement through slurry pipelines.
Supplies to Chhattisgarh-based units up 20% in Jul’21: NMDC’s iron ore rake movements to Chhattisgarh-based mines were recorded at 66 in Jul’21 compared to 55 a month ago, as per data maintained with SteelMint. NMDC had cut iron ore prices for Jul’21 deliveries by INR 200-230/tonne (t). Drop in pellet and sponge iron prices along with a sharp decline in bids at OMC’s recent auction had resulted in the price correction. Chhattisgarh-based plants remained more active in booking iron ore than pellets.
Supplies to other state-based units fall in Jul’21: NMDC’s iron ore rake movements to other state-based units were recorded at 273 in Jul’21 compared to 286 in Jun’21.
- RINL procured 127 rakes in Jul’21 against 140 in Jun’21. Sluggish steel demand impacted sales which in turn may have resulted in lower iron ore procurement.
- Goa-based pellet maker, Chowgule and Company, procured zero rakes in Jul’21 as against six a month ago.
- West Bengal-based Rashmi Metaliks procured three rakes from NMDC in Jul’21, largely stable against Jun’21. Amidst higher Odisha iron ore prices and tighter merchant availability, the company had participated in NMDC’s auctions.
Movement for exports continues to remain nil: NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO have been scrapped as its key sop of a reduced 10% export duty has been removed as against the normal 30% paid by private iron ore exporters.
NMDC’s (C.G.) iron ore rake movement: Jul’21 vs Jun’21
* Excluding Arcelormittal Nippon Steel India Limited’s movement through slurry pipeline
Each rake carries approximately 3,850 t iron ore
Source: SteelMint Research, Railways
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