- State intake down 34% m-o-m to 167 rakes in Apr’26
- Chhattisgarh sourcing drops sharply amid inventory buildup
The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 579 rakes from its Chhattisgarh mines in April 2026, equivalent to 2.22 million tonnes (mnt) of iron ore.
The number of rakes dispatched declined around 18% compared to 683 rakes (2.62 mnt) in March, as per BigMint data. On a y-o-y basis, dispatches in April surged by 10% compared with 538 rakes in April 2025.
NMDC’s rake movements fell due to reduced sourcing by NMDC’s Nagarnar plant following inventory bulit up from earlier dispatches. Therefore they have cut it down for April. JSW Steel also cut procurement and KIOCL due to subdued pellet export market.
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.
Meanwhile, NMDC’s iron ore production stood at 4.64 mnt in April, 13.3% down m-o-m. Monthly sales fell largely by 37% m-o-m to 3.68 mnt as against 5.9 mnt in the past month.
Sourcing by Chhattisgarh-based units fell 34% m-o-m
NMDC dispatched 167 (0.64 mnt) iron ore rakes to Chhattisgarh-based units in April, a drop of 34% as against 254 (0.98 mnt) in March. Supplies to its own Nagarnar based facility dropped 44% to 80 rakes against 143 rakes, in the prior month due to pre-maintained high inventory levels. Moreover, dispatches to Raigarh-based plants (such as BS Sponge and Jindal Steel and Power) reduced below 50% m-o-m. Additionally, NMDC’s rake movements to other steelmakers also saw a decline m-o-m.
In Chhattisgarh, several sponge iron units have continued to favor iron ore lumps, driven by their cost advantage over pellets. Procurement dynamics have also evolved, with plants increasingly sourcing material from Maharashtra and Odisha, as these supplies have entered the Raipur and Raigarh markets at more competitive price levels.
Sourcing by units outside Chhattisgarh edge down 4% m-o-m
Overall, NMDC’s iron ore movements to plants outside Chhattisgarh dropped around 4% to 412 rakes in April against 429 in the past month.
Intake by Rashtriya Ispat Nigam Limited (RINL), the leading buyer, decreased largely to 160 rakes against 180 in the previous month. RINL’s sourcing from NMDC reduced amid slow-paced demand in the finished-steel segment in the region.
Iron ore rakes to JSW Steel’s Dolvi plant in April declined by 18% m-o-m to 110 rakes against 134 rakes. Preference for higher-grade NMDC iron ore was maintained healthy for blending, but higher running inventories kept aggressive buying on hold.
Dispatches to KIOCL declined by 43% m-o-m to 8 rakes in April against 14 rakes in March, primarily due to a slowdown in the pellet export market amid rising freights, which prompted a reduced intake for material.
Jindal Steel Odisha Limited received 48 rakes in April against 45 rakes in March.
Outlook
NMDC’s iron ore rake movements are expected to remain stable to soft in the near term, with procurement likely to stay measured amid subdued steel demand. Continued preference for iron ore lumps and competitive inflows from Maharashtra and Odisha may further cap upside. A gradual recovery in dispatches is likely with improvement in downstream steel demand.
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