India: NMDC’s iron ore rake movement rises 15% m-o-m in Sep’22

Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 336 in September 2022, rising by 15% against 291 in August, 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.

JSW largest buyer: JSW Steel recorded a 10% increase in receipts of iron ore rakes at 148 in September against 134 in August. Indian mills seem to have raised production after undergoing their maintenance shutdowns. India’s crude steel output increased to 10.2 mnt in August compared to 10.07 mnt in July.

RINL’s iron ore sourcing rose by 30% to 122 rakes in September as against 94 in August. A recovery in domestic steel prices on seasonal demand pick up kept mills active in steel production. Primary mills are learned to have raised finished steel prices by INR 1,000-1,500/t for early-October sales.

Southern India-based pellet-maker KIOCL’s iron ore sourcing decreased to 6 rakes in September compared with 9 in August. The company has notified that its pellet plant operations in Mangalore have once again been suspended temporarily from 23 August due to a 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 were recorded at 293 last month compared to 250 in August.

Sourcing by Chhattisgarh-based units stable: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 43 in September compared to 41 in the previous month. However, the figures are still sharply lower compared to the monthly average of 75-80 rakes. Pellet trade in domestic market rebounded in September.

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: Aug’22 vs Sep’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