Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 291 in August 2022, up sharply by 71% against 170 in July, according to data maintained with SteelMint. The figure includes movements within Chhattisgarh and to other state-based units but excludes supply to AM/NS India through slurry pipeline. Notably, a rake carries 3,850 tonnes (t) of iron ore.
RINL largest buyer: Rashtriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC’s iron ore from Chhattisgarh in August. RINL’s iron ore sourcing rose by 42% to 94 rakes in August as against 66 in July.
JSW Steel recorded a noticeable hike of 205% in receipts of iron ore rakes at 134 in August against 44 in July. Indian mills seem to have raised production after undergoing their maintenance shutdowns. India’s crude steel output increased to 10.07 mnt in July versus 9.97 mnt in June.
Southern India-based pellet-maker KIOCL recorded iron ore sourcing at 9 rakes in August, compared with 6 in July. KIOCL has recently notified that the company’s pellet plant operations in Mangalore have once again been suspended temporarily from 23 August due to lack of demand in the domestic market and an unviable international market as a result of the imposition of pellet export duty. The government announced a 45% duty on iron ore pellet exports on 22 May.
NMDC’s total iron ore rake movements to plants based outside Chhattisgarh was recorded at 250 last month compared to 136 in July.
Sourcing by Chhattisgarh-based units rises: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 41 in August compared to 34 in the previous month. However, the figures are still sharply lower compared to the monthly average of 75-80 rakes. State-based units preferred sourcing iron ore over pellets on cost-effectiveness. Notably, the pellet trade volumes recorded by SteelMint in central India’s Raipur dropped sharply to 67,000 t in August 2022 versus 171,500 t in July. SteelMint’s domestic pellet index, PELLEX, increased to INR 8,900/t DAP Raipur in August from INR 8,580/t in July.
Notably, NMDC had raised lump ore prices by up to INR 200-240/t and fines by INR 100/t on 11 August.
Zero exports: NMDC’s long-term iron ore export contracts with Japanese steel mills (JSMs) and South Korea’s POSCO were scrapped as the key sop of 10% reduction in export duty was removed.
NMDC’s (Chhattisgarh) iron ore rake movement: Jul’22 vs Aug’22
Figs. exclude ArcelorMittal Nippon Steel India Limited’s movement through slurry pipeline.
Each rake carries approximately 3,850 t of iron ore
Source: SteelMint Research, Railways
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