Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 261 in Sept’21, down 25% against 346 in Aug’21, according to data maintained with SteelMint. The figures include movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India’s through slurry pipelines. Notably, a rake carries 3,850 tonnes (t) of iron ore.
RINL’s sourcing lower by 23% m-o-m: Rastriya Ispat Nigam Limited (RINL) remained the largest buyer of NMDC’s iron ore from Chhattisgarh in September. RINL’s iron ore sourcing decreased by 23% to 151 rakes in September as against 197 in August. NMDC’s total iron ore rake movements to plants based outside Chhattisgarh were recorded at 225 last month compared to 305 in the previous month.
JSW Steel recorded a 13% decline in receipt of iron ore rakes at 49 in September against 56 in August. This could be largely due to planned shutdown at its flagship Vijayanagar works which in turn lowered the raw material requirement.
Southern India-based pellets maker KIOCL sharply reduced sourcing from 21 rakes in August to 7 in September. KIOCL has undertaken temporary shutdown of its pellet plant from 20 Sept’21 for rectification of the indurating machine alignment, major repairs and other maintenance works. The plant is expected to resume operations after six weeks.
Gujarat-based plants, Gallant Ispat and Mono Steel, remained active in sourcing ore from NMDC Chhattisgarh.
Supplies to Chhattisgarh-based units down 12%: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 36 in September compared to 41 a month ago, as per data maintained with SteelMint. With pellet exports realisation falling, players remained active in the domestic market, keeping sponge players active in booking pellets.
Movement for exports remains 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 (Chhattisgarh) iron ore rake movement: Sept’21 vs Aug’21
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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