India: NMDC’s iron ore rake movements rise by 14% m-o-m in Mar’26

• NMDC’s iron ore sales surge by 28% m-o-m in Mar’26
• Steelmakers prefer iron ore lumps amid higher pellet costs

The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 683 rakes from its Chhattisgarh mines in March 2026, equivalent to 2.62 million tonnes (mnt) of iron ore.

The number of rakes dispatched rose 14.2% compared to 598 rakes (2.30 mnt) in February, as per BigMint data. On a y-o-y basis, dispatches in March surged by 30.1% compared with 525 rakes in March 2025.

NMDC’s rake movements rose due to increased sourcing by Raigarh-based plants and healthy lifting by NMDC’s Nagarnar plant. Moreover, several plants also increased sourcing from NMDC for lumps amid higher pellet costs. 

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 5.35 mnt in March, steady m-o-m. Monthly sales jumped 28.3% m-o-m to 5.9 mnt as against 4.6 mnt in the past month.

Sourcing by Chhattisgarh-based units rises 18% m-o-m

NMDC dispatched 254 (0.97 mnt) iron ore rakes to Chhattisgarh-based units in March, an increase of 17.6% as against 216 (0.83 mnt) in February. Supplies to Raigarh-based plants (such as BS Sponge and Jindal Steel and Power) surged, while supplies to NMDC’s Nagarnar plant grew modestly by 6.7% to 143 rakes in March against 134 in February. Additionally, NMDC’s rake movements to other steelmakers also saw an uptick m-o-m.

In Chhattisgarh, several sponge iron units continued to prefer iron ore lumps. The cost-effectiveness of lumps over pellets had sparked this switch in raw material sourcing around two months ago.

Sourcing by units outside Chhattisgarh rises 12% m-o-m

Overall, NMDC’s iron ore movements to plants outside Chhattisgarh increased around 12% to 429 rakes in March against 382 in the past month.

Intake by Rashtriya Ispat Nigam Limited (RINL), the leading buyer, increased to 180 rakes against 156 in the previous month. RINL’s sourcing from NMDC increased amid lower pellet purchases from south India, due to the cost-effectiveness of iron ore over pellet.

Iron ore rakes to JSW Steel’s Dolvi plant in March grew a massive 59.5% m-o-m to 134 rakes against 84 rakes. JSW preferred higher-grade NMDC iron ore for blending with lower-grade material.

Dispatches to KIOCL declined by 67% m-o-m to 14 rakes in March against 43 rakes in February, primarily due to a slowdown in the pellet export market amid rising freights, which prompted need-based buying.

Jindal Steel Odisha Limited received 45 rakes in March against 37 rakes in February.

Outlook

NMDC’s iron ore rake movements are projected to remain stable throughout April, even as geopolitical tensions drive up fuel prices and regional freight rates. As these rising logistics costs primarily impact road transport, steelmakers are expected to shift their preference toward rail-based rake movements. Moreover, given that NMDC’s production is currently at record high, any upside in sales volume is less likely.