Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 346 in Aug’21 against 339 in Jul. The figures include movements to Chhattisgarh as well as other state-based units but exclude AM/NS India’s movement through slurry pipelines. Notably, a rake carries 3,850 t of iron ore.
RINL largest buyer in Aug’21: Rastriya Ispat Nigam Limited (RINL) emerged as the largest buyer of NMDC iron ore from Chhattisgarh in Aug. Ore movement recorded a 55% increase to 197 in Aug as against 127 in Jul. This could be due to supported demand in longs as primary mills lifted re-bar offers twice in Aug. Towards the beginning of Aug, mills lifted offers by INR 1,000-1,500/t followed by a second hike of INR 500-1,000/t towards mid-Aug.
NMDC’s total iron ore rake movements to plants based outside Chhattisgarh were recorded at 305 in Aug’21 compared to 273 in Jul.
JSW Steel recorded a 14% decline in receipt of iron ore rakes that stood at 56 rakes in Aug against 65 in Jul.
South India-based pellet maker, KIOCL, sharply reduced sourcing from 59 rakes in Jul to 21 in Aug. Indian pellet export prices hitting a nine-month low in absence of firm bids from China which could have resulted in lower iron ore sourcing.
West Bengal-based Rashmi Metaliks procured two rakes from NMDC in Aug, as against three in Jul. Amidst higher Odisha iron ore prices and tighter merchant availability, the company had participated in NMDC’s auctions.
Supplies to Chhattisgarh-based units down 36% in Aug: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 41 in Aug compared to 66 a month ago, as per data maintained with SteelMint.
NMDC had cut iron ore prices for Aug deliveries by INR 200-350/t. Drop in bids in OMC’s iron ore lump e-auction along with the decline in global iron ore prices have resulted in decline in offers.
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 (C.G.) iron ore rake movement: Aug’21 vs Jul’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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