Government-owned NMDC recorded iron ore rake movements from Chhattisgarh at 403 in October 2022, rising by 20% against 336 in September, according to data maintained with SteelMint.
This 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: RINL became the largest buyer, with 161 iron ore rakes received in October, increased by 32% as against 122 in September. Improved coal availability & supported long steel prices have kept mills’ iron ore sourcing supported.
JSW Steel iron ore sourcing inched up by 1% to 149 rakes in October as against 148 rakes in September. Indian mills seem to have reduced production due to extended maintenance shutdowns and subdued market conditions. India’s crude steel output decreased to 9.87 mnt in September compared to 10.2 mnt in August.
Southern India-based pellet-maker KIOCL’s iron ore sourcing stood at 8 rakes in October compared with 6 in September. 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 352 last month compared to 293 in September.
Sourcing by Chhattisgarh-based units inches up: NMDC’s iron ore rake movements to Chhattisgarh-based units were recorded at 51 in October compared to 43 in the previous month. Pellet trades in central India witnessed a drop in October due to sufficient inventories and booking of material from Maharashtra. Hence, demand from NMDC’s iron ore remained supported.
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: Sep’22 vs Oct’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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