In January 2024, the National Mineral Development Corporation (NMDC), India’s largest iron ore miner, shipped 526 rakes, equivalent to 2.02 million tonnes (t) of iron ore from Chhattisgarh. This indicates a 3% increase compared to the 512 rakes (1.97 million tonnes) recorded in December. The data, sourced from SteelMint, encompasses movements within Chhattisgarh and to other state-based units, excluding the supply to AM/NS India through the slurry pipeline. It’s worth noting that each rake carries 3,850 t of iron ore.
Sourcing by other state-based units enhance rake movements: Rashtriya Ispat Nigam Ltd (RINL) emerged as the top buyer, experiencing an 11% increase in iron ore rake receipts from NMDC Chhattisgarh. In January, RINL received 176 rakes compared to 158 in December. Notably, RINL successfully restarted its blast furnace (BF)-3 with a capacity of 2.5 million tonnes per annum on December 30, 2023, marking a significant milestone in its operational rejuvenation.
JSW Steel maintained stability with 109 iron ore rakes in January, consistent with the figure recorded in December.
Kudremukh Iron Ore Company Limited (KIOCL), a Southern India-based pellet maker, witnessed a marginal decrease of 3% in sourcing, receiving 60 rakes in January compared to 62 in December. KIOCL resumed pellet plant operations in mid-January after suspending production due to the non-availability of iron ore fines.
NMDC increased its supply to the Nagarnar plant, dispatching 61 rakes in January compared to 57 in December.
JSPL significantly increased its iron ore rake bookings from NMDC, reaching 11 rakes in January, compared to just 1 rake in December.
Overall, NMDC’s total iron ore rake movements to plants outside Chhattisgarh reached 468 in January, reflecting an 8% increase from the 435 recorded in December.
Sourcing by Chhattisgarh-based units fall: NMDC’s iron ore rake movements to Chhattisgarh-based units totalled 58 rakes (0.22 million tonnes) in January, marking a 27% decline from the 77 rakes (0.30 million tonnes) recorded in December. Notably, sponge iron producers appear to have increased their pellet sourcing in January 2024. Deal records from Bigmint indicate pellet transactions exceeding 125,000 t in Raipur, a notable increase from the 70,000 t recorded in December 2023.
Additionally, NMDC Chhattisgarh implemented price adjustments, increasing prices of DR-CLO by INR 200/t and fines by INR 250/t, effective from 2 January, 2024. This decision followed active responses in auctions and global price support.
